Reg Reform Still Likely to Pass but Hurdles Remain

For a bill that has already seen its fair share of fits and starts, regulatory reform legislation hit a wall midweek as it failed a key procedural vote in the Senate and lawmakers squabbled over whether to add more amendments. One amendment that could see the light of day-but has yet to be introduced-contains language that would kill the Home Valuation Code of Conduct, a regulation much hated by loan brokers and some appraisal groups. Despite the political chaos, the bill is still considered likely to pass, although when or how was unclear. "I have to believe this is just a temporary setback," said Douglas Elliot, a senior fellow with the Brookings Institution. "There's still powerful political forces pushing this bill forward. Because the bill is going to go through, you have people fighting to get their stamp on it." The Senate voted 57-42 to invoke cloture, a procedural move that requires 60 votes to pass and would limit debate and amendments. A successful cloture vote is vital to moving the bill forward to final passage. Speaking after the vote, Senate Majority Leader Harry Reid said he was betrayed by at least one unnamed senator who told him he would vote for cloture and did not. "I know how to count votes," Reid said. "A senator broke his word." Two Democrats voted against cloture-Sens. Maria Cantwell of Washington and Russ Feingold of Wisconsin-while two Republicans-Maine Sens. Susan Collins and Olympia Snowe-voted for it. (Reid also voted no, but only for procedural reasons.)