Senators Reach Agreement On Bipartisan Foreclosure Bill

May 20, 2008 10:32 a.m. EST

Washington, D.C. (AHN) - Senators have reached an agreement about a bipartisan foreclosure bill that is likely to gain the support from the White House.

Banking Committee Chairman Sen. Christopher Dodd (D-CT) and Richard Shelby (R-AL), the committee's highest-ranking Republican, announced late Monday that they are working on legislation to insure loans of homeowners threatened with foreclosure without adding any more costs to taxpayers. The bill will establish a new housing fund as well as a new regulator for Fannie Mae and Freddie Mac, the largest mortgage companies in the U.S.

"The primary goal here is to keep people in their homes, but also to establish a floor, a bottom to all this," Dodd is quoted by the New York Times as saying.

Shelby also said, "My primary consideration during negotiations on this package has been to protect the American taxpayer, and I believe we've made significant progress toward that goal," according to the Los Angeles Times.

President Bush repeated his threat to veto the bill on Monday but White House spokesman Tony Fratto subsequently issued a statement saying, "We look forward to seeing the details of the bill as it goes through Senate mark-up - especially provisions to expand programs of the Federal Housing Administration," according to the Philadelphia Inquirer.