Senate Housing Fix Just Might Fly

Yesterday the Senate approved a proposal aimed at fixing the mortgage mess. To help homeowners avoid foreclosure, they plan to get loan balances reduced and help people refinance with FHA backed loans. Supposedly this bill would put less taxpayer money at risk.

This Senate bill has a better chance of making it. A similar proposal from the House of Representatives was criticized by the Bush Administration and considered veto-fodder. The Senate bill is considered a bipartisan effort, and is getting more lip service from the White House. For details on the plan, see the New York Times coverage of the Senate foreclosure plan.