White House opposes Senate housing compromise

The White House Tuesday voiced its opposition to a much-touted Senate compromise bill to address the housing crisis.

The announcement from White House spokeswoman Dana Perino throws cold water on a measure that Democrats and Republicans had hoped would be completed by the end of the week.

{mosads}“The bill will likely do more harm than good by bailing out lenders and speculators, and passing on costs to other Americans who play by the rules and honor their mortgage debt obligations,” Perino told reporters.

The White House opposition caught Senate Minority Leader Mitch McConnell (R-Ky.) off guard.

“You’re telling me something I was unaware of,” McConnell told reporters, indicating that the Bush administration had not informed its key ally on the decision.

Earlier, McConnell touted the “significant progress” that had been made on the measure and lauded its bipartisan nature.

“I’m confident that before the week is out we’ll be able to stand together to announce completion of a good, responsible bill,” he said on the Senate floor.

Perino noted that it is unlikely that the Senate bill would have reached the president’s desk because “the House has indicated that it plans to go its own way anyway.”