Housing Legislation being debated in Congress

The House of Representatives is debating a housing package to help troubled homeowners refinance into less expensive mortgages and provide tax breaks to first time home buyers.

If passed, the bill would include $15 billion for state and local governments to rehabilitate forclosed properties, and would authorize $300 billion in loan guarantees to help distressed borrowers refinanced into FHA (Federal Housing Administration) mortgages, which are government backed.   This bill has the potential to assist 500,000 homeowners.

 President Bush is threatening to veto this bill, since this legislation would force the government to take an  undue financial risk.

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