Senate Democrats outline housing bill

WASHINGTON, Feb. 14 (UPI) -- An economic stimulus package dealing with the slumping U.S. housing market and the mortgage crisis was unveiled by Senate Democratic leaders Thursday.

Among other things, the package would increased pre-foreclosure counseling funds, revising laws to allow states to issue bonds for home refinancing and change portions of the Bankruptcy Code to allow judges to restructure mortgages, Senate Majority Leader Harry Reid, D-Nev. said during a news conference.

Consideration of overhauling the Federal Housing Administration that the Bush administration sought would be taken up separately, Reid said.

"The pieces of legislation that we have put together into one bill, each one will be something to stimulate the economy," Reid said.

If the legislation is signed into law, "a million homes will no longer be foreclosed upon," Reid said.

He said he hoped to bring it to the Senate floor the week after Congress returns from its Presidents Day recess.

"The bottom line is that we are not going to get out of these economic problems, this recession, until we deal with the housing crisis," Sen. Charles Schumer, D-N.Y., said.