Capitol Hill to Tackle Mortgage Mess

The week sees the mortgage crisis take centre stage in the Senate as a bill aimed at helping homeowners and businesses affected by the subprime debacle comes up for a key procedural vote.

Set to take place on Tuesday, the bill needs 60 votes to proceed to debate, where if successful could be up for a final vote on Wednesday.

Senate Banking Committee Chairman, Christopher Dodd has vowed to push the legislation and will hold hearings in the coming week on the measure aimed at providing cheaper mortgages backed by the government.

Dodd's proposal would allow the Federal Housing Administration to encourage lenders to forgive a portion of a loan and issue a more affordable mortgage that would be backed by the federal government.

The measure would also provide a tax credit for people buying a foreclosed home as well as contain $4 billion to help cities and towns buy-up foreclosed and abandoned houses.