Treasury plan appears likely to pass

Washington -- Financial leaders in the U.S. Congress expect quick passage of a plan to extend federal credit for two mortgage lenders, sources said.

U.S. Senate Banking Committee Chairman Chris Dodd, D-Conn., said he would support a "one vote, one package" strategy by bundling the U.S. Treasury Department's plan to extend credit to troubled lenders Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association with the recently passed Senate housing bill, Politico, a Washington publication, reported Tuesday.

U.S. House of Representatives Financial Services Committee Chairman Barney Frank, D-Mass., said he expects the House to approve the bill as soon as Thursday, the report said.

But some Republicans are asking for more time to study the situation.
"Congress should not use this 'crisis' to rush the government into the mortgage business," said U.S. Sen. Jim DeMint, R-S.C.

U.S. Treasury Secretary Henry Paulson Jr. announced the plan Sunday. Freddie Mac and Fannie Mae, which hold trillions of dollars in debt, have seen share values tumble in the past week.

Copyright 2008 by United Press International.