House Panel Approves $15 Billion Foreclosure Bill

Democrats pushed a $15 billion housing bill through a House committee Wednesday over the objections of Republicans, who called it a government bailout. The measure would send federal loans and grants to cities and counties hit hardest by the housing crisis so they could buy and fix up foreclosed properties. It passed the Financial Services Committee 38-26, mostly along party lines.
Democrats said it would prevent blight in distressed neighborhoods, but the Bush administration and Republicans view it as a government giveaway for lenders and speculators that could lead to even more foreclosures. The plan is aimed at complementing a broader housing overhaul package whose centerpiece would let hundreds of thousands of struggling homeowners refinance into more affordable, government-insured loans. That bill is expected to get a committee vote next week, and both measures are expected to move through the House the week after.