Sources say bankruptcy provision is out

Senate sources say the base housing bill that will emerge later this afternoon on the chamber floor will not include the controversial bankruptcy provisions that had stalled talks on the issue for weeks — but the issue will get an up-or-down vote as an amendment.

{mosads}Majority Leader Harry Reid (D-Nev.) will be announcing details of the bill at 5 p.m., but sources close to the talks say the provisions that were pushed by Majority Whip Dick Durbin (D-Ill.) have been taken out of the base bill. Sens. Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.) were leading the talks as their parties’ respective leaders on the Senate Banking Committee.

The final package that will emerge will be heavy on tax credits, like the $15,000, three-year credit proposed by Sen. Johnny Isakson (R-Ga.), although the amount of the credit will be revised.

Also, a final vote will not happen until the middle of next week. Thursday will be used for amendments — an open amendment process is expected — and then the bill will likely be taken up in earnest next Tuesday. Republican sources say they expect Reid will allow a reasonable amount of time for amendments before filing cloture.

In a joint statement, Reid and GOP Senate Leader Mitch McConnell (Ky.) noted that an agreement had been reached in principle on the legislation.

“Getting to this point has required compromise by all sides,” they stated. “This is a solid, bipartisan start to keeping families facing foreclosure in their homes, helping other families avoid foreclosures in the future, and helping communities already harmed by foreclosure to recover.”