Senators Cut Tentative Deal on Housing

Package includes tax credits, $4B in grants, $100M for homeowner counseling
By Jonas Oransky,  Newser Staff
Posted Apr 2, 2008 5:14 PM CDT
Senate Majority Leader Harry Reid of Nev., left, and Senate Minority Leader Mitch McConnell of Ky.   (AP Photo/Susan Walsh)
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(Newser) – The Senate today struck a deal on a package of legislation intended to soften the impact of the foreclosure crisis, the New York Times reports. The bipartisan measures include $4 billion to help local governments buy foreclosed properties and $100 million for homeowner counseling. Harry Reid called the tentative deal, which Chris Dodd and Richard Shelby hashed out overnight, "good news for the American people.”

The compromise bill omitted a Democratic proposal to allow bankruptcy judges to adjust the terms of subprime mortgages, but it's expected to re-enter the debate as an amendment, the Washington Post reports. The package also doles out breaks for homebuilders and credits for buyers of foreclosed properties. The parties also reportedly struck a deal on new rules for the FHA.