US senate backs housing plan

Bill could help about 400,000 families facing difficulties paying their mortgages.

    The US economic downturn has adversely affected the housing market [AFP]

    George Bush, the presdent, has dropped his earlier opposition and promised to sign the bill into law.

    'Vital legislation'

    Before the vote, senators praised the bill as a product of "bipartisan co-operation" and said the legislation was vital to stem the fallout from a declining housing sector.
      
    "You're having the worst of all possible worlds. Wealth is declining, the source of wealth creation and costs are rising simultaneously," said Chris Dodd, chair of the Senate Committee on Banking, Housing and Urban Affairs.
      
    "When we consider the role home equity has played in support of  consumer spending, we see the danger a vicious downward cycle could create."

    The programme will be effective from October 1.
      
    Citing figures on increasing home foreclosures, Dodd said: "Behind each one of these numbers I've cited here this morning there is a family, a mother, father, children trying to grow up facing unemployment, losing their homes, wondering what the future holds  for them."

    The success of the temporary fund will depend on lenders' willingness to accept losses on original loans to shift overstretched borrowers into new loans. 

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Learn what India's parties' symbols mean by drawing them

    Learn what India's parties' symbols mean by drawing them

    More than 2,300 political parties have registered for the largest electoral exercise in the world.

    Visualising every Saudi coalition air raid on Yemen

    Visualising every Saudi coalition air raid on Yemen

    Since March 2015, Saudi Arabia and a coalition of Arab states have launched more than 19,278 air raids across Yemen.

    Why did Bush go to war in Iraq?

    Why did Bush go to war in Iraq?

    No, it wasn't because of WMDs, democracy or Iraqi oil. The real reason is much more sinister than that.