A Wisconsin Congressman says the future of a so-called Mortgage Foreclosure Prevention Act remains "up in the air."
President Bush has rejected a Senate version of the bill aimed at helping those hurt by the housing market collapse. Congressman Steve Kagen says a deal could still be a long ways off. He says the House and Senate leadership needs to come to common ground on what's best for the country first, and both sides remain divided about what exactly needs to be done.
Congress wants a bill that helps homeowners and lenders recover their losses, but the White House is worried the measure will only "bail out" speculators. Kagen says the bill is needed to re-evaluate what properties are worth, as the nation heads into a time of recession.
The U.S. House is expected to push for extra bankruptcy reforms in its version of the bill. Kagen wants to include a provision that knocks 15-percent off the value of a property that's being foreclosed on. He says that's needed to keep taxpayers from having to pay for risks taken by lenders that did not pay off. Kagen also wants more oversight of the mortgage lending industry.