WASHINGTON – On a vote of 48-46, Senate Republicans blocked an attempt by Democrats to bring up a housing bill that GOP members said would mean higher interest rates for all mortgage holders.
At the last minute, Senate Majority Leader Harry Reid changed his vote to no, making the real vote, 49-45. This allows the Democratic senator from Nevada to bring the bill back up in the coming weeks for reconsideration.
Democrats say their bill would save millions from foreclosure. It includes a controversial provision that allows bankruptcy judges to restructure mortgages on primary residences for those homeowners with endangered sub-prime loans and nontraditional loans.
President Bush and other Administration officials, as well as the Mortgage Bankers Association, called the effort nothing but a bailout for speculators. The president said homeowners should work with their banks to negotiate better terms for loans.
FOX News' Trish Turner contributed to this report.