FACTBOX-Comparison of US Senate, House housing legislation

May 20 (Reuters) - The U.S. Senate Banking Committee on
Tuesday approved a housing rescue package that would enable the
Federal Housing Administration to guarantee billions of dollars
in refinanced mortgages for distressed homeowners.

The bipartisan deal brokered in the committee will likely
clear the way for the plan to be approved by the full Senate.
After that, the legislation would have to be reconciled with a
housing package approved earlier this month by the U.S. House
of Representatives.

The White House threatened to veto the House bill, but has
promised to take a close look at the Senate version.

Following is a summary of the House and Senate bills:

SENATE VERSION:

* Approved May 20 by Senate Banking Committee, 19-2, with
the support of ranking Republican Richard Shelby of Alabama.

* Expands Federal Housing Administration to guarantee up to
$300 billion in failing mortgages after lender cuts at least 15
percent of original loan amount. New loans must be set at
30-year, fixed interest rate and when property is sold, any
appreciation in value is split between lender and government.

* Aims to help up to 500,000 home borrowers.

* Provides $500 million for Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie
Mac (FRE.N: Quote, Profile, Research, Stock Buzz), government-chartered mortgage finance companies,
to cover refinanced loans that ultimately fail. The funds will
be diverted from a newly created affordable housing trust
fund.

* Creates new regulator for Fannie Mae and Freddie Mac,
replacing the current Office of Federal Housing Enterprise
Oversight (OFHEO). The new regulator, the Federal Housing
Finance Agency, can impose stricter minimum capital levels.

* Requires state licensing of mortgage originators.

* Amends Truth in Lending Act to resolve concerns about
legal liability that have slowed loan modifications.

(Full version of bill posted here )

HOUSE VERSION:

* Approved on May 9 by the House, 266-155, with the support
of 39 Republicans.

* Expands FHA to guarantee up to $300 billion in mortgages
after lenders cut the appraised value by at least 15 percent
and reduce the loan amount to less than 90 percent of new
estimated value.

* Creates federal oversight board to set limits on loan
fees, interest rates, and establish formula for compensating
all lien holders for those mortgages that will be refinanced.

* Allows federal government retain a share of future
home-price appreciation after resale to defray costs of
program.

* Aims to help up to 500,000 borrowers at cost of about
$1.7 billion, according to non-partison Congressional Budget
Office.

* Creates new regulator for Fannie Mae and Freddie Mac, the
Federal Housing Finance Agency, to ensure both operate with
"adequate" capital.

* Gives local governments $15 billion in federal grants to
restore foreclosed homes that have fallen into disrepair and
authorizes states to issue $10 billion in tax-exempt bonds to
buy home loans headed toward foreclosure.

* Gives first-time homebuyers $7,500 tax credit to be
repaid, interest free, over 15 years.

* Authorizes $40 million for FBI to hire agents and
prosecute mortgage fraud.

(Full version of bill posted here ).

For more news about the U.S. housing crisis, click
[ID:nN04374814].
(Editing by Tom Hals)