Two Senate Finance Committee members tomorrow plan to offer an amendment to the panel’s economic stimulus package that would increase the private-activity bond volume cap by $15 billion and allow state and local finance agencies to issue bonds to help struggling homeowners refinance subprime mortgage loans, housing and congressional sources said.

Any such attempt by Sens. John Kerry, D-Mass., and Gordon Smith, R-Ore., would come after President Bush, in his State of the Union speech Monday, urged Congress to “allow state housing agencies to issue tax-free bonds to help homeowners refinance their mortgages.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.