Senate Nears Mortgage Deal

WASHINGTON -- Senate lawmakers are close to a deal that would expand a government program to insure hundreds of billions of dollars in refinanced mortgages, top lawmakers said Thursday, according to The Wall Street Journal.

The deal, if finalized later in the day, could breathe new life into congressional efforts to stabilize the rocky housing sector. The bill would also overhaul supervision of mortgage-finance giants Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks, an issue that has been a priority for the Bush administration for several years. If the fragile talks collapse, it would become extremely difficult for Congress to move forward with any housing policy package this year, the paper reported.

Staff members on the Senate Banking Committee have discussed legislation for weeks, and as recently as last week talks appeared to be faltering. But staff members for Sen. Christopher Dodd, D-Conn., and the panel's ranking Republican, Richard Shelby of Alabama, broke major ground Wednesday and continued talking until 2 a.m. Thursday, the paper reported.

The Senate Banking Committee is scheduled to vote on the bill at 10 a.m., but Sen. Shelby said on CNBC that he hoped to push the panel vote back until 3 p.m. so that both sides had more time to negotiate, the paper reported.

-- NYSSCPA.org News Staff

Posted on 5/15/08