The latest ray of hope to salvage the mortgage marker was sent back to the House. The Senate had voted 84-12 on passing the measure, but Senator Jim DeMint (R-SC) helped to delay it with stringent objections. He feels that the measure will only serve to rescue lenders. Other problems that the democrats are looking at are what limits to make on loans the FHA can insure as well as on Fannie and Freddie.

Representative Barney Frank (D-Mass) believes they could make the changes in about a week and that it would hopefully be accepted this time. Steny H. Hoyer (D-MD.) a majority leader, feels that the Democrats have a good chance of working out the bill´s problems with the President as high up officials, such as Treasury Secretary Henry M. Paulson, are interested on implementing the plan. According to Hoyer, they defiantly have some leverage.

The main outline of the plan would modernize the FHA and allow the FHA to provide almost $300 billion in new loans to give better and more affordable fixed-rate mortgages to troubled homeowners. However as mentioned before, this allows all lenders who would agree to take a loss on the mortgages, to be able to reclaim some of the money and not have to go through the hassle of a foreclosure.

The plan would also make a new regulator for the FHA and make more controls for Fannie Mae and Freddie Mac. There would also be $14.5 billion in breaks for the housing tax, and credit up to $8,000 for first time home buyers.

Senator Christopher J. Dodd (D-CT) a key maker of the bill, feels that it needs to be passed immediately, as “we’re going to look at a situation that only gets worse,”. He also feels it would boost much needed confidence in the nation, as right now it seems that the country cannot seem to take any measures to pull itself out of the slump.