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Senators near housing deal By JULIE HIRSCHFELD DAVIS, Associated Press Writer
Thu May 15, 11:22 AM ET

Senators near housing deal - Yahoo! News

WASHINGTON - Key senators said they are close to a bipartisan deal on a homeowner rescue package that could help a half million strapped borrowers get government-backed mortgages.

Sen. Christopher J. Dodd, D-Conn., the Banking Committee Chairman, postponed a meeting Thursday to vote on the plan in anticipation of reaching a compromise with Sen. Richard C. Shelby of Alabama, the panel's senior Republican.

The measure also tightens regulation of Fannie Mae and Freddie Mac, the government-sponsored companies that finance mortgages.

Staff aides to both senators, who have been negotiating for weeks in search of an elusive deal, worked overnight Wednesday and were still haggling over details of the bill Thursday. One major sticking point was how to insulate taxpayers from risk should homeowners who got government help default on their new mortgages, said Senate aides, who described the talks on condition of anonymity because the agreement wasn't final.

President Bush, who has threatened to veto a similar House-passed bill, cites exposing taxpayers to potential losses as a top concern. The White House calls the plan a burdensome bailout.

(( what that translates to is I need the money for my war in Iraq, we already know Bush's position on the taxpayers by mlurp))