House Passes Homeowner Aid

WASHINGTON -- The House passed a giant package of measures designed to tackle the housing crisis Thursday, but only after two days of bickering that signal turbulence ahead for the legislation. Democrats and Republicans, abandoning the brief comity that helped them forge an economic-stimulus package earlier this year, argued over the procedures used to bring the bill to a vote. Another flash point was the millions in spending directed toward community groups Republicans said would fund Democrats' get-out-the-vote efforts.

The House voted 266-154 in favor of the centerpiece of the legislation -- $300 billion in federal loan guarantees -- despite a White House veto threat. The battle reflected the package's status as the biggest, most-comprehensive legislative response to the housing crisis likely to pass this year. The heart of the legislation is a program to help struggling homeowners by providing them with new mortgages backed by the Federal Housing Administration. The guarantees would be provided if lenders agree to reduce the principal of a borrower's existing mortgage. [MORE]