The U.S. Senate passed its own version of a $700 billion mortgage bailout package.
By a vote of 74 to 25 -- less than half of all U.S. senators -- the legislative body passed the 449-page Emergency Economic Stability Act.
Voting against the $700 billion bailout bill were 15 Republicans and 10 Democrats, while 40 Democrats and 34 Republicans were for it.
Senators attached the act to the Mental Health Parity bill for constitutional and procedural reasons, Anne Canfield, executive director of the Consumer Mortgage Coalition, said in a statement.
"The Senate-passed bill will be considered by the full House under a 'closed' rule,'" Canfield stated.
Among the modifications to the House's failed bill are the introduction of a $150.5 billion tax proposal package, the addition of a provision for mental health coverage and an increase to $250,000 from $100,000 the maximum insurance coverage for bank deposits. The legislation also includes provisions for tax breaks, renewable energy tax breaks and an extended Alternative Minimum Tax.
"We are extremely pleased that the Senate has passed this bill and urge the House of Representatives to bring it up and pass it as quickly as possible," Mortgage Bankers Association Chief Operating Officer John A. Courson said in a statement.
A joint letter yesterday from more than 50 U.S trade groups to both houses of Congress expressed profound disappointment over Monday's bill-killing House vote and called on the legislators to "act as soon as possible this week to enact legislation to bring stability to credit markets."
The groups pointed to the massive decline Monday in the stock market after the House voted down a slimmer version -- though much of that day's losses were recovered Tuesday.
"The impact of the House action was painfully demonstrated yesterday when the stock market lost $1.2 trillion as the Dow Jones Industrial Average fell 777.8 points, the largest single-day point drop in American history," the associations' letter stated.
The House is expected to vote early Friday on this package.