Senate Announces Breakthrough On Housing Bill

By Martin Kady II

(The Politico)  The Senate may have a deal in hand with the stalled housing bill.

In a surprise announcement, Senate leaders Mitch McConnell (R-Ky.) and Harry Reid (D-Nev.), cast aside the procedural politics and agreed to bring a foreclosure prevention bill to the Senate floor. Both parties have agreed to move ahead and allow the bill to come to the floor, with each side offering amendments as long as they relate to housing.

The breakthrough is extraordinary if only because the Senate has been so accustomed to gridlock on major issues like Iraq and foreign intelligence. But clearly, senators from both side of the aisle realized that legislating is better than political rhetoric as the housing market continues in a meltdown.

McConnell and Reid have agreed to allow a bipartisan bill, negotiated by Banking Committee Chairman Christopher Dodd (D-Conn.) and the panel's top Republican, Sen. Richard Shelby of Alabama.

"It would have the confidence and support of both of the leaders of the Banking Committee," McConnell said. "Most of us believe we need legislation."

Reid said "this is a step in the right direction," But he warned that unrelated amendments will not be tolerated.

"We're not going to solve tax policy on this housing bill," Reid said.

The Crypt will update with details of the new legislation as they become available.