The House approved an amendment Wednesday that would authorize $30 million to expand counseling services to homeowners facing foreclosure proceedings.
The amendment, offered by Rep. James A. Traficant Jr. (D-Ohio), was approved by voice vote and attached to the Housing and Community Development Act of 1987.
Under the measure, the Housing and Urban Development Department would award the money to qualified local counseling organizations to help homeowners who are facing foreclosure but have good work and credit histories.
In addition, eligible homeowners with federally backed mortgages would be protected from foreclosure proceedings for six months.
Questions Amount of Funds
Rep. Chalmers P. Wylie (R-Ohio) said the concept behind Traficant's amendment was a good one, but he added that the housing bill already contained about $4 million for counseling services.
"I don't think we can continue to add money to the bill," said Wylie, the ranking minority member of the House Banking Committee. "It looks like we're about to load up the canoe to sink it."
A substitute amendment offered by Rep. John Hiler (R-Ind.), which would have transferred the $30 million from another program in the bill, failed by voice vote.