The Senate Banking Committee voted Tuesday to approve of a plan to allow the federal government to insure up to $300 billion in refinanced loans for homeowners in financial distress. Chairman Christopher Dodd (D-Conn.) and Ranking Member Richard Shelby (R-Ala.) worked together on the bipartisan bill designed bring stability to the housing market and help stem the rising rate of foreclosures. The Banking committee voted Tuesday to pass the Federal Housing Finance Regulatory Reform Act of 2008.

Major features in the housing package passed earlier this month by the U.S. House of Representatives are included in the Senate bill, including reforms to Fannie Mae and Freddie Mac, and as well as the FHA's foreclosure prevention measure.

On Monday, President Bush reiterated his plan to veto any legislation that provides a "bailout" for homeowners in foreclosure. Once the full Senate considers the bill, there will need to be a House-Senate conference committee resolution of any technical differences in the bills before the final package is forwarded to the President for consideration. Stay turned.

Here's some more background on the proposed legislation and the conflict between Congress and the President that may hold it up.

NAR Press Release on the subject.

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