WASHINGTON A plan by Senate Republicans aimed at pushing mortgage rates lower went down to defeat last week.
Processing Content
The plan would have encouraged credit unions and banks to issue mortgages with interest rates of 4% to 4.5%. Fannie Mae and Freddie Mac would have bought the mortgages on the secondary market. Jumbo loans would have been ineligible.
But the bid failed Thursday night by a 62-35 vote.
The plan also contained an assortment of expensive tax cuts such as cutting the bottom 10 percent income tax rate in half for two years.
New York Democrat Charles Schumer said the plan was too expensive and would provide a windfall to banks charging fees to refinance mortgages.
