Senators Still Parleying on GSE, FHA Bills

Senate Banking Committee leaders were still negotiating late Thursday afternoon on GSE regulatory reform and Federal Housing Administration refinancing bills after furious negotiations Thursday morning had prompted some to predict that an agreement was near. At the request of Sen. Richard C. Shelby, R-Ala., committee Chairman Christopher J. Dodd, D-Conn., postponed a 10 a.m. mark-up session as the two sides tried to come to terms on the foreclosure prevention bill, which uses the FHA to refinance struggling borrowers with "underwater" mortgages. Sen. Dodd said Thursday afternoon that an agreement had not been reached. "We are getting closer, but we aren't there yet," the committee chairman said. Sen. Shelby says he is concerned about using taxpayer funds to refinance speculators and others who made bad decisions. "We shouldn't bail out people who probably shouldn't have bought a home to begin with and probably won't pay if they are refinanced," he said on CNBC-TV.