Portland Mortgage Broker

The Senate on Thursday passed a bipartisan package of tax breaks and other steps designed to help businesses and homeowners weather the housing crisis. Unfortunately, though the measure passed by an impressive 84 to 12 vote, it still leans too far in favor of banks and home builders and does little to help borrowers at risk of foreclosure. In its current form, the White House also opposes the plan – though they have not yet issued an explicit threat to veto it. President Bush has countered with a far narrower proposal that involves only an FHA modernization component.

The bill combines large tax breaks for homebuilders and a $7k tax credit for people who buy foreclosed properties, as well as $4 billion in grants for communities to buy and fix up abandoned properties. Also included is an FHA modernization piece that would make it easier for the FHA to insure up to $400 billion in mortgages.

Despite widespread, bipartisan approval in the Senate, more changes are likely before the bill makes its way to the White House. It will likely be combined in the Banking Committee with a similar House proposal, the result of which could be very different from either approved changes.