Foreclosure rescue bill meets support

WASHINGTON (AP) — A massive foreclosure rescue bill overwhelmingly cleared a key Senate test Tuesday, drawing broad support from Democrats and Republicans alike.

The Senate voted 83-9 to speed up work on the $300 billion mortgage aid plan, putting it on track for a final vote as early as the end of the day.

The resounding vote reflected a keen interest in both parties in claiming election-year credit for helping homeowners amid tough economic times.

Still, the measure faces a veto threat from President Bush and disputes among Democrats about key details. Those challenges will probably delay any final deal until mid-July.

Sen. Christopher J. Dodd, D-Conn., the Banking Committee chairman, said the legislation “would allow us to begin to put a tourniquet on the hemorrhaging of foreclosures in this country.”

“What better gift on independence could we give the American people than a sense that this, their Congress of the United States, can come together, despite political differences, and craft legislation to make a difference for our country,” Dodd said.

Senate passage would set the stage for high-stakes negotiations to resolve Democrats’ differences. Conservative Democrats known as “Blue Dogs” are concerned about how to pay for the measure, while members of the Congressional Black Caucus — most of them liberal — call it “unacceptable,” arguing it doesn’t do enough to address the needs of African Americans.

Leaders also are divided on how high to place loan limits that apply to government mortgage insurance and financing.

The centerpiece of the package is a foreclosure rescue program in which the Federal Housing Administration would provide $300 billion in new, cheaper mortgages for distressed homeowners who otherwise would be considered too financially risky to qualify for government-insured, fixed-rate loans.