The Senate approved a safety net for hundreds of thousands of Americans facing home foreclosure. Further changes are expected, requiring the package to again win approval from both chambers. The bill authorizes the Federal Housing Administration to help 400,000 borrowers trade in mortgages with rising monthly payments for more-affordable, government-backed loans. Lenders benefit from the loan guarantee only if they forgive part of the homeowner's debt. The legislation also would strengthen the FHA's regulation of troubled mortgage giants Fannie Mae and Freddie Mac.
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