House OKs capital backstop for Fannie, Freddie

A bill that authorizes a $300 billion expansion of FHA loan guarantee programs and gives the Treasury Department additional leeway to buy the debt of Fannie Mae and Freddie Mac is headed to the Senate -- with the Bush administration lifting a threat to veto the bill.

The House of Representatives approved the sweeping housing bill, HR 3221, in a 272-152 vote Wednesday, agreeing to a compromise with the Senate that preserves some, but not all, of the temporary increase in the loan limits for Fannie, Freddie and the Federal Housing Administration.

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