The Senate passed a bill to help ease the mortgage foreclosure crisis that includes:
- o - large tax breaks for homebuilders and credits for people who buy foreclosed properties,
- o - $4 billion in grants for communities with the highest foreclosure rates to buy and rehabilitate foreclosed properties.
- o - $100 million for pre-foreclosure counseling and stronger loan disclosure requirements.
- o - $7,000 tax credit for the purchase of foreclosed homes.
- o - modernization of the Federal Housing Administration that would enable more homeowners to refinance into loans backed by the Depression-era agency.
- o - $10 billion in tax-free mortgage revenue bonds to help homeowners refinance subprime loans
The Bush administration opposes the plans, saying it would make the mortgage mess worse. House Democratic leaders regard the Senate proposal as benefitting businesses rather than homeowners.