House mortgage bill. The bill, passed Thursday evening by a 291-127 vote, garnered support from 64 House Republicans. No Democrats were opposed.The bill would ban lenders from making loans that borrowers can't repay, create a nationwide licensing system for mortgage brokers and make Wall Street banks that package mortgage securities into investments liable for violations of lending laws.Many Republicans were critical of the bill's provision to increase banks' liability, with Rep Ed Royce, R-Calif., calling it a "trial lawyer's dream."Meanwhile, Sen. Tom Coburn, R-Okla., on Thursday blocked an effort by Senate Majority Leader Harry Reid, D-Nev., to get quick approval of a bill to expand authority for the Federal Housing Administration, a Depression-era agency that insures loans made to low-income borrowers.A similar bill, backed by the Bush administration, passed the House in September.It would permit the agency to insure loans at large as $417,000 -- about $54,000 more than the current limit. The government estimates it could enable more than 200,000 homeowners whose loans are excluded from federal backing to come under the agency's umbrella."Have no doubt, this bill will limit credit availability and options for thousands of Americans who want to grab their share of the American dream of homeownership.," Kieran Quinn, chairman of the Mortgage Bankers Association, said in a statement. The American Bankers Association said it has "serious concerns" with the bill, arguing that it would add more regulations for banks.
