Bush Retreats On Veto Threat, Signs Housing Bill

Balking on his earlier efforts to veto any bill that contained help to lower income families struggling with mortgage payments, Bush signed into law this morning a broad based bill aimed at offering affordable government-backed mortgages and federal bailouts to lenders Freddie Mac and Fannie Mae.

The bill will:

• Create a new regulator for GSE's
• Raises caps on guaranteed loans
• Creates tax refund for first time home buyers
• Eliminates down payment assistance for FHA loans
• Creates permanent fund for affordable housing
• Provides $4 billion in grants to states to purchase foreclosed property
• Bolsters Fannie and Freddie with more government aid.

Flip-flop on veto threat also has Bush at odds with GOP.