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Sparring over housing crisis threatens aid plan
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More from NationalWASHINGTON — President Bush and Congress are clashing over how to address the housing crisis, clouding the prospects of an election-year rescue package. Bush said Wednesday he would veto the Democrats' broad housing aid plan, saying it wouldn't help struggling homeowners.
"We are committed to a good housing bill that will help folks stay in their house, as opposed to a housing bill that will reward speculators and lenders," Bush said at the White House after meeting with House Republicans.
The centerpiece of the housing package, aimed at preventing foreclosures, would have the government step in to insure up to $300 billion in new mortgages for distressed homeowners.
The White House has also threatened that Bush would veto a separate measure to send $15 billion to states hit hard by the housing crisis for the purchase and rehabilitation of foreclosed properties. It's aimed at preventing blight in neighborhoods plagued by high foreclosure rates.
The House is expected to vote on both bills today.
The two parties sparred bitterly on the housing measures Wednesday, with Republicans saying they would help reckless borrowers who overextended themselves, unscrupulous lenders, and investors who tried to game the market at the expense of renters and homeowners who made wiser choices.
Rep. Barney Frank, D-Mass., the author of the broader housing package, said it was time for the government to step in.
"It was this religion of never intervening that brought us here. A limited intervention to undo the negative consequences is what this bill calls for," said Frank.
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