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S.O.S.: Bush Votes Down Mortgage Meltdown Measure

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Some Republicans have discreetly defected to the Democratic party recently, if only to support a bill that, if enacted, would (hopefully) stave off the mortgage meltdown by allowing the Federal Housing Administration to take on up to $300 billion in refinanced loans for troubled homeowners. The FHA would then open up a few loopholes in order to allow the same people who qualified for jumbo loans in the first place— those with poor credit, missed payments, and debt up the wazoo— to secure government-backed loans currently reserved for more solvent borrowers. Lawmakers have worked a bunch of provisions into the plan in order to keep buyers from flipping on the gov's dime, staking a nice, high claim on the property should its owner even deign to do so. Major malfunction: Our Prezalicous won't sign the thing! Bush has already declared that he will veto the bill if it comes across his desk today, claiming that it will reward "speculators" rather than homeowners. G.O.P: 1. Home buyers: 0.
· Bush Threatens To Veto Housing Crisis Plan [NPR News]
· Morning Mortgage Meltdown: G.O.P. Bends to Dems' Plans [Curbed SF]