President Bush Drops Opposition to Housing Bill to rescue Fannie and Freddie

WASHINGTON - July 23 2008 - The White House said Wednesday that President Bush had dropped his opposition to the housing bill moving through Congress, clearing the way for a broad package of legislation that would shore up the nation’s troubled mortgage companies, Fannie Mae and Freddie Mac, and help struggling homeowners refinance loans.

The House is expected to vote on the bill as early as Wednesday, and it could be sent to Mr. Bush’s desk by the end of the week.

Mr. Bush had voiced objections to a $3.9 billion provision that would give grants for local governments to purchase and refurbish foreclosed properties — a provision that the White House regards as a bailout.

But Mr. Bush set aside those objections on the advice of the Treasury secretary, Henry M. Paulson Jr., who told him that the overall package was necessary to help stabilize the housing and credit markets, according to the White House press secretary, Dana Perino, who announced the switch Wednesday morning. Ms. Perino said the gravity of the crisis, coupled with Congress’ plans to recess later this summer, was the reason for the reversal.

“The president would not have signed this bill if we had a lot of extra time on our hands,” Ms. Perino said. “We don’t.”

Bush Drops Opposition to Housing Bill
by SHERYL GAY STOLBERG and DAVID M. HERSZENHORN | New York Times