U.S. House approves housing market rescue bill

23/07/2008 21:11

WASHINGTON (Reuters) - The U.S. House of Representatives on Wednesday approved major housing market rescue legislation that would bolster Fannie Mae and Freddie Mac, set up a new regulator for the two mortgage giants, and create a fund to help thousands of distressed homeowners refinance their mortgages.

The bill will go next to the Senate, where Democratic leaders are urging prompt passage to send it on to President George W. Bush, who said on Wednesday he will sign it.

With foreclosures up and home values down, the deepest U.S. housing slump in decades has triggered a global credit crunch and threatens to drag the nation’s economy into recession.

The sweeping bill also would provide tax breaks to spur home buying, send grants to cities and states to buy and repair foreclosed homes, and set up the first national licensing system for mortgage brokers and bank loan officers.

(Reporting by Kevin Drawbaugh; Editing by James Dalgleish)