WASHINGTON – The Senate could take up as early as today a House-passed version of the Housing relief bill.

The House approved the measure (H.R. 3221) by a 272-152 vote yesterday and both the chairman and ranking Republican on the Senate Banking Committee predicted it would pass in their chamber. Yesterday morning, President Bush dropped his veto threat, even though his spokeswoman said he was still unhappy with a provision to include $4 billion to help cities buy up foreclosed properties in certain neighborhoods.

The measure sets up a fund, financed by Fannie Mae and Freddie Mae to provide government loans to help some of the victims of the subprime mortgage crisis refinance their mortgages. It also strengthens regulatory oversight of Fannie and Freddie, the government sponsored enterprises that together own about half of all mortgages and gives the Treasury Department authority to buy shares of them if they need capital.

The credit union trade associations supported the measure, citing the importance of having a strong Fannie and Freddie to purchase mortgages from credit unions.

“NAFCU is pleased H.R. 3221 has passed and believes it is important to our economy and for credit union access to the secondary market,” said NAFCU Senior Vice President of Government Affairs Dan Berger in a statement.