President Bush has officially dropped his opposition to the pending housing bill designed to ease troubles in the mortgage market, according to an AP report. The U.S. House of Representatives is expected to vote on the bill shortly, and it could be signed into law this week.
Under the terms of the bill, the federal government would help struggling homeowners obtain new and more affordable loans, as well as offer Fannie Mae and Freddie Mac a cash infusion. Bush had previously objected to the $3.9 billion provision, claiming that it was aimed at helping bankers and lenders rather than troubled homeowners.
''We believe this is not the time for a prolonged veto fight, but we are confident the president would prevail in one,'' White House press secretary Dana Perino stated in a conference call.
''The positive aspects of the bill are needed now to increase confidence and stability in the housing and financial markets,'' she added. ''While we have concerns with other aspects of the bill, it is important that the new authorities are put in place promptly. And so President Bush will accept Secretary [Henry] Paulson's recommendation to sign the bill.''
Source: AP