DanS.

Defying Veto Threat, House Backs Foreclosure Bill

By DAVID STOUT
Published: May 9, 2008

WASHINGTON — House Democrats defied a veto threat from President Bush on Thursday as they approved a bill that would provide $15 billion to the states to buy and spruce up foreclosed properties.

The bill, sponsored by Representative Maxine Waters, Democrat of California, would make federal money available in loans and grants for the rehabilitation and eventual sale or rental of blighted properties. The measure is one of two major housing initiatives being pushed by Democrats despite the stated opposition of the president.

The Waters bill was approved by a vote of 239 to 188, with 11 Republicans siding with the majority. Only one Democrat, Kirsten Gillibrand, a first-term representative from the Hudson Valley area of New York, voted against the measure.

In any event, the bill was approved by a majority that was well short of the two-thirds that would be required to override President Bush’s expected veto. And even if enough Republicans could be persuaded to change their positions to give the bill a two-thirds majority in the House, its fate would remain uncertain in the Senate, where Democrats hold only a razor-thin majority.

Backers of the Waters bill have argued that it would help prevent neighborhood blight and assist deserving people. Republican opponents of the bill have countered that it could have the unintended effect of encouraging foreclosures.

Meanwhile, Democrats were still promoting a broader bill pushed by Representative Barney Frank, the Massachusetts Democrat who heads the Financial Services Committee. Mr. Frank proposes having the Federal Housing Administration give its backing to $300 billion in loans to aid homeowners overwhelmed by debt.

President Bush has vowed to veto the Frank bill if it reaches him in its present form, on the ground that it would assist lenders and borrowers who have acted irresponsibly. But Treasury Secretary Henry M. Paulson Jr., who has been able to work with Mr. Frank in the past, has promised to keep working for a bill that the president would sign, and House Democrats are trying to win over Republican votes by attaching to the Frank bill items that President Bush favors, like an overhaul of the housing administration.

DanS.

Somebody set me straight on why this is a good idea....

Titanium Cat

I suppose if you were one of those banks who had made a bunch of foolish loans and were stuck with a pile of foreclosed properties worth less than the money paid out you'd think it was a good idea.

But other than that I really can't think of anything. The old "spruce up the neighborhood" excuse sounds typically disingenuous.

DanS.

That's what I'm thinking...I find it strange that for all of the whining that people on the left did when they blamed Bush and republicans for the fed LOANING money to investment firms(something that they don't have control over)...that the democrats are the only ones actually trying to bail out the banks by GIVING them money...where's the outrage?

Titanium Cat

It seems to me that the Democrats are trying to do something to make it look like they are addressing the problem in a workable fashion. They know their 300 billion dollar bailout isn't going to pass so they are using the "neighborhood blight" approach as another wedge.

At least that is what the cynical me thinks.

DanS.

Yep...I agree....at least in part...

BillCosby

This in part was I was referring to regarding sheepl.......... Dem & repub..... (neither sees it in themselves-exclusively the other guy).....

If the repub do it then it is bad. If the dems do it (same thing) it is ok........... BBbbaaaaAAHHHhhh.........

I was not for the repub wall street bailout.... But I was not against it either.... I didn't want what may have happened as a result be on my hands............lol

IMO they should fix it up not me...... It is their property......

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Preventive war is not war!!!!Counter-terror is not terror

DanS.

I agree...and actually I'd extend it from just R's and D's....that people act the same way in regards to their preferred politician.

cheapseats

It cannot be done by anyone without a vested interest.

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cheapseats

Where's the Change?

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