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Crude oil prices fall again Friday
Sen. Christopher Dodd, D-CT, chairs a Senate Banking, Housing and Urban Affairs Committee hearing on the response by federal financial regulators to ongoing turmoil in U.S. credit and mortgage markets and the near collapse of Bear Stearns on Capitol Hill in Washington on April 3, 2008. (UPI Photo/Roger L. Wollenberg)
"The primary goal here is to keep people in their homes," said Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking, Housing and Urban Affairs Committee.
The money would go to expand offerings of government-insured mortgages, The New York Times (NYSE:NYT) reported Tuesday.
The plan also has tentative Bush administration approval because it doesn't tap directly into taxpayer dollars.
The program would be financed by the Federal National Mortgage Association (NYSE:FNM) and the Federal Home Loan Mortgage Corporation. (NYSE:FRE)
The U.S. House of Representatives passed a similar bill this month with a 266 to 154 vote.
Both the House and Senate versions include provisions to limit losses by lenders if they agree to lower principal on loans refinanced away from adjustable-rate loans to 30-year fixed-rate loans, the Times reported.