Bush to sign housing bill

WASHINGTON, July 23 (UPI) -- U.S. President George Bush, saying the measure's positives outweigh the negatives, said he wouldn't veto the housing bill expected to win approval in Congress.

White House spokeswoman Dana Perino told reporters Wednesday that Bush has supported mortgage lending reforms for many years.

"The positive aspects of the bill are needed now to increase confidence and stability in the housing and financial markets, but we have concerns with other aspects of the bill. It is important that the new authorities are put in place promptly and so the president will accept (Treasury) Secretary (Henry) Paulson's recommendation to sign the bill," Perino said.

"We believe this is not the time for a prolonged veto fight …"

Paulson Tuesday said securing support for the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association is "critical." The two entities guarantee approximately half of the nation's mortgages.

The bill expected to clear Congress Wednesday would raise the U.S. debt ceiling by $800 billion to give the government more leeway in dealing with the crisis. Mortgage foreclosures have been hitting records as exotic, interest-only mortgages expire and homeowners are hit with rising interest rates coupled with first-time principal payments.

The Congressional Budget Office estimated Tuesday Paulson's Fannie Mae and Freddie Mac proposals would cost as much as $25 billion over the next two years.