Rep. Lee Terry (R-Neb.) introduced a bill that would offer market-based incentives--such as a one-time tax credit for homebuyers--rather than a massive bailout, to address the growing housing crisis.
House Republican leaders touted Terry's proposals at a press conference Tuesday morning. They also trumpeted a measure by Rep. Spencer Bachus (R-Ala.) that would reform the Federal Housing Administration and establish tougher rules for lenders.
Democrats, led by House Financial Services Committee Chairman Barney Frank (D-Mass.), have been assembling their own package to address the growing housing crisis. That package is expected to hit the House floor soon.
One of Frank's measures would clear moer than $300 billion in federal loan guarantees for homeowners struggling to pay their mortgages.
Bachus said the Democrats' proposal would place an unfair burden on the millions of Americans who rent their homes who Bachus said would see no benefits from Frank's bill.
"When you bail folks out, you have got to come up with the money from somewhere," said Bachus. "And the [Democrats' bill] takes it from…renters."
Republicans slammed the Democrats' proposal, saying it will "reward scam artists" and is, in the words of House Minority Leader John Boehner (R-Ohio), "very, very unfair."
Rep. Eric Cantor (R-Va.) said the GOP proposals would be "the medicine the market needs" to calm investors nervous about the housing crisis dragging down the entire economy.