Housing Bill Momentum Slowed Down by Senate Issues

When the Senate voted on the controversial housing rescue plan, it received overwhelming support. But sadly, the likelihood of it becoming a law soon is reduced because of some problems coming from another unrelated proposal.

Senator John Ensign and Senator Maria Cantwell have proposed an amendment that will basically extend energy tax credits for another year. If approved, it will cost the government $19 billion. Because there are no plans of cutting expenditure or increasing taxes, the said amendment will cause problems for the approval of the housing rescue bill.

Democrats believe that the energy proposal is actually a move by the Republicans to block the housing bill, which has received criticisms from the opposition. Even the White House has been vocal on its disapproval. For the mortgage rescue bill opponents, the said law will only serve to protect those irresponsible lenders and borrowers.

Senator Ensign was also criticized for pushing the energy proposal considering that his state, Nevada, possess the highest foreclosure rate in the nation. At present, there is one foreclosure filing for every 98 households in Las Vegas and home prices have dropped by almost 30 percent statewide.

Time is also another issue since there is the July Fourth recess and the August recess, which lasts for an entire month. according to Senator Harry Reid, Senate Majority Floor Leader, he will do everything he can to ensure that the housing bill is completed as soon as possible, even if it means sacrificing their vacation.

With no clear end in sight, the American public is worried about the likelihood that home prices will decline further and more distressed homeowners will lose their homes to foreclosure. The federal government should set aside politics for once and focus on finding a long-term solution to the mortgage crisis at the soonest possible time.

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