House approves foreclosure bill

WASHINGTON, May 8 (UPI) -- The U.S. House Thursday disregarded a veto threat and approved legislation to provide $15 billion to the states to buy and improve foreclosed properties.

The bill, sponsored by Rep. Maxine Waters, D-Calif., was approved 239-188. President George W. Bush has threatened to veto the proposal, The New York Times reported Thursday.

The legislation would make federal money available in loans and grants for the rehabilitation and eventual sale or rental of blighted properties.

Proponents say the bill would help prevent neighborhood blight and help struggling communities. Critics say it could encourage housing foreclosures.

A more far-reaching bill by House Financial Services Chairman Barney Frank, D-Mass., would allow the Federal Housing Administration to back $300 billion in loans to aid struggling homeowners.

Bush has said he will veto the bill if it reaches him in its present form because, he says, it would assist lenders and borrowers who have acted irresponsibly.

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