White House: No change in housing veto threat

The White House said Monday that President Bush will veto the housing bill if it contains a provision that would give money to communities to buy foreclosed properties.

{mosads}Despite calls for urgent action to prop up struggling mortgage giants Fannie Mae and Freddie Mac, the White House said last week and repeated Monday that the president will not sign any bill that contains a provision supported by the Congressional Black Caucus (CBC) that would include $4 billion for the so-called Community Development Block Grants (CDBGs).

White House press secretary Dana Perino said the president’s “position hasn’t changed, but we continue to work with” congressional Democrats.

Perino said Treasury Secretary Henry Paulson has been reaching out to House Speaker Nancy Pelosi (D-Calif.) and Senate Democrats in hopes of reaching an agreement.