Senate Passes Mortgage Aid Bill

The U.S. Senate has approved a housing rescue bill by a 72-13 vote to help beleaguered homeowners stave off the threat of foreclosure.

The bill effectively gives the U.S. Treasury Department the power to lend money to government sponsored enterprises, Fannie Mae and Freddie Mac from going into default. It would also create a new regulatory body to tighten controls on Fannie and Freddie. It would also provide $3.9 billion in grants for buying and renovating foreclosed property in the hardest-hit communities.

In order to pass the bill, lawmakers had to officially raise the U.S. debt ceiling, increasing it to $10.6 trillion.

The bill will now make its way to President Bush and is expected to be signed midweek, despite his opposition to nearly $4 billion in aid to local communities.