The House of Representatives today passed a bill designed to help homeowners facing foreclosure after taking out subprime loans. The bill passed along partisan lines and could face a veto from President Bush. 

As the Washington Post’s Dina ElBoghady’s reports, such legislation could put an overwhelming burden on the largely unknown Federal Housing Administration. A part of Housing and Urban Development, FHA works with private lenders to give mortgage insurance to borrowers. By working with riskier borrowers, as the legislation requires, FHA may need resources it currently doesn’t have. The agency has been self-sustaining since it was created during the Great Depression. Read El Boghdady here.  MB

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