House Bails Out Lenders
CBS
Transcript
relief is finally on the way for hundreds of thousands of homeowners facing foreclosure and for two mortgage industry giants jim axelrod at the white house has that story with a recess fast approaching and congress needing to show americans it's doing something about the housing crisis the a's are 272 the nays are 152. this afternoon the house passed a bill that throws an estimated 25 billion lifeline to freddie mac and fannie mae the backbone of the home mortgage industry the bill makes it easier for both to raise unlimited capital from the government if needed and would allow hundreds of thousands of homeowners to refinance rather than face foreclosure this is absolutely necessary if this hadn't been passed then i think confidence would have completely evaporated we would have seen fannie and freddie on the financial precipice the white house also wants to demonstrate it's on the case after first threatening a veto over a provision that would make billions available for communities to buy foreclosed homes president bush changed course given that the housing legislation is so essential right now it was more important to accept the bill in this form so now it's on to the senate where the bill is expected to pass before congress adjourns in two weeks this bill goes now beyond just sort of reacting to things but acting in a way that i think will get us in front of the problem wall street seemed to agree today after the president said he wouldn't veto shares of fannie mae shot up by close to 12 percent shares of freddie mac rose by 11. jim axelrod cbs news the white house