House OKs Mortgage Rescue Plan, Despite Veto Threat

Plan would allow homeowners to get more stable government loans
By John Johnson,  Newser Staff
Posted May 8, 2008 5:50 PM CDT
A sale sign stands outside a new, single-family home in east Denver on Sunday, March 16, 2008.    (AP Photo/David Zalubowski)
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(Newser) – The House today shrugged off a veto threat from President Bush and passed a wide-ranging rescue plan for US homeowners, Reuters reports. The centerpiece of the legislation would allow people to trade in risky, fast-rising mortgages for more stable government loans. The $300 billion measure would help an estimated 500,000 homeowners at risk of foreclosure.

Bush said yesterday the plan rewards "speculators," but the White House signaled it's willing to work toward compromise. Though 39 Republicans voted in favor of the measure, it would currently fall 25 votes short of the number needed to override. The bill also calls for a $7,500 tax credit for first-time home-buyers in a bid to boost sales and prices.