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$300 billion FHA refi plan to be part of package

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The House of Representatives is expected to vote next week on a package of bills including a $300 billion expansion of Federal Housing Administration loan guarantee programs and a $7,500 credit for first-time home buyers sought by home builders. The package will also include measures sought by the Bush administration, including legislation updating FHA loan guarantee programs and stricter independent oversight of Fannie Mae and Freddie Mac, Rep. Barney Frank said. Also part of the package is a proposal to provide $15 billion in loan and grant programs to buy up owner-vacated foreclosed homes, HR 5818, authored by Rep. Maxine Waters, D-Calif. Frank has said his bill to expand FHA loan guarantee programs, HR 5830, would help up to 2 million borrowers and would mostly pay for itself through premiums collected from borrowers, but concedes taxpayers could be on the hook for up to $6 billion in losses. Others say participation in the program would be more limited, because ...