US lawmaker targets housing rescue bill by July 4

WASHINGTON, June 9 (Reuters) - Major legislation to save hundreds of thousands of homeowners from foreclosure remains on track to go to the White House before July 4, a senior U.S. lawmaker said on Monday.

Senate Banking Committee Chairman Christopher Dodd and other lawmakers have said for weeks they want to agree on a final bill and send it to President George W. Bush by July 4.

But the full Senate, occupied by other matters, has yet to vote on legislation passed by Dodd's committee by a 19-2 vote on May 20. The House approved its own bill on May 8.

"Our hope is to be able to put on the president of the United States' desk by July 4 this comprehensive Financial Services/Banking Committee proposal," Dodd said again on the Senate floor, as lawmakers gathered for another work week.

Staffers for the Connecticut Democrat and his counterpart in the House of Representatives, Financial Services Committee Chairman Barney Frank, are already talking about how to reconcile differences between the two chambers' measures.

"Our hope is in the remaining days here before the July break, hopefully even sooner than that, we'll be able to present to our colleagues a final proposal," Dodd said.

An aide to Frank, a Massachusetts Democrat, said pre-July 4 completion of a final measure remained a possibility.

As drafted, the Senate bill would create a new, $300 billion federal mortgage insurance fund that could save 500,000 borrowers from foreclosure. Lenders would have to erase a portion of the original loan amount to participate.

The bill would also form a stronger regulator for mortgage finance companies Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz).