Senate (Finally) Passes Housing Bill; Action Now Moves Back to House.

The Senate finally passed the housing reform bill today (Friday) by a vote of 63 to 5. (Both of the Senate members from Oregon voted for the bill). [Question--Where in the hell were the 30 or so other Senators, excluding those with health absences--including Senator Ensign from Nevada, whose objections held consideration of the bill up for weeks?].

The bill now moves to the House where changes from the Senate version remain possible (if not likely). [At one point during the debate Senator Dodd suggested that provisions for HUD block grants to cities and states to fund foreclosure acquisitions may not survive in the House].

While a presidential veto remains a threat the vote margins in the Senate and House may be sufficient to override a veto (should a compromise bill be agreed to by both the House and the Senate). It is also possible that the White House may see the handwriting on the wall , and with some tweaks "agree" to a future House/Senate compromise. Editorial comment: One of the provisions sought by the Administration, to prevent the use of non profit down payment gift funds with FHA loans, is IMO a good provision as FHA loans with non profit down payment gift fund use have a much higher claims rate than loans where home buyers use other sources to fund their down payment.

The version of the bill as passed by the Senate is not yet posted at Thomas. I suggest you wait a day or so and then look HERE for the Senate bill version with today's date(7/11).