As Senate Majority Leader Harry Reid pushes for a vote as early as today on a bill that includes two bond-related provisions to help homeowners facing foreclosures, it likely will face major opposition over a proposal that would change the bankruptcy code to allow judges to modify mortgage loans.

One of the bond-related provisions in the bill, which Reid introduced Feb. 14, would temporarily increase by $10 billion the private-activity bond volume cap and allow the excess capacity to be used to refinance "qualified subprime loans," as well to finance loans to first-time homebuyers. The other provision would provide $4 billion of community development block grant program funds that could be used by localities with the highest foreclosure rates to purchase and refurbish foreclosed homes.

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