U.S. Senate to Vote on Housing Bill

The U.S. Senate, meeting in a rare weekend session, was poised Saturday to pass a landmark housing bill meant to ease the effects of mortgage crisis.

The bill offers up to $300 billion in loan guarantees for consumers saddled with subprime adjustable-rate mortgages and establishes a rescue plan for the Fannie Mae and Freddie Mac mortgage finance giants, CNN reported.

The measure passed the U.S. House of Representatives Wednesday soon after U.S. President Bush dropped his veto threat. Once the Senate passes it as expected Saturday, it will go to the White House for Bush’s signature.

The centerpieces of the bill include allowing the Federal Housing Administration to insure up to $300 billion in new 30-year fixed-rate mortgages for at-risk borrowers if their lenders agree to write down loan balances to 90 percent of the homes’ current appraised value; and to establish a stronger regulator for Fannie Mae and Freddie Mac, CNN said.