House passes mortgage aid bill

Washington Post

The House today approved an ambitious plan to rescue hundreds of thousands of homeowners at risk of foreclosure by helping them trade exotic loans with rapidly rising monthly payments for more affordable mortgages backed by the federal government. Despite a White House veto threat, 39 Republicans joined Democrats in supporting the proposal, the centerpiece of a broader housing bill that represents Washington's most aggressive response to the nation's housing crisis. The measure aims to unfreeze mortgage markets by expanding the reach of the Federal Housing Administration and strengthening mortgage giants Fannie Mae and Freddie Mac. It also would create a $7,500 tax credit for first-time homebuyers that aims to boost sales and slow plummeting home prices.