House OKs Mortgage Rescue Plan, Despite Veto Threat

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. (More Barney Frank stories.)