Comments: FHA Bailout Bill Passed House But Will Be Vetoed by White House

The White House threatened to veto a major housing rescue bill on Thursday just as the U.S. Senate began debate on it, setting up a partisan fight over legislation that backers say could save.

A bill that would allow the government to guarantee new mortgages for homeowners facing foreclosure passed the House on Thursday, but it faces a veto threat from the White House and an uncertain.

White House Rescinds Threat To Veto Housing Bill. 2008 would expand the role of the Federal Housing Administration, the bill. Its companion bill had passed the House of Representatives.

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In his veto message, Malloy said the changes to the Hartford bailout are "a reflection of indignation on the part of some legislators," who were upset that the municipal accountability review.

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Senate Debating Bailout. Bush Threatens Veto.. by the two and the FHA. The White House said in a statement that if the Senate legislation were sent to Bush as now drafted, "his senior advisers would recommend that he veto this bill." The White House said the provision on sending aid to state.

At least initially, the White House showed little inclination to compromise, denouncing the House bill as a bailout. "House Democrats passed legislation that they know will never become law.

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The House on Thursday passed a contentious foreclosure-prevention package, which still faces a veto threat from the White House and an uncertain fate in the Senate. In a 266-154 vote – with 39 Republicans voting in favor-lawmakers approved a proposal, to let the FHA insure up to $300 billion in new loans over four years if FHA lenders agree to reduce the mortgage principal.

The plan to retool the FHA passed 266 to 155 and notably drew the support of 39 Republicans, even though the measure faces a White House veto threat.. in the House bill that would create a new.