New mortgage bailout plan

A plan approved by the Senate Committee yesterday would rescue up to 500,000 borrowers likely to face foreclosures. The idea is to use the profits from the government mortgage giants Fannie Mae and Freddie Mac, instead of rising taxes to the population.

Both Democrats and Republicans banded together and the plan was approved with a 19-2 win, which shows the chances of the housing aid package. The plan will divert the money from Fannie Mae and Freddie Mac, which was initially intended to pay homeseekers.

The housing aid plan is far from final, and would still have to pass through the lawmakers and presented to President Bush. Will he be advised to veto this one as well?

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