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.