The White House threatened yesterday to veto a Senate version of a housing bill that had garnered the support of many Republicans.

It said it approved of certain provisions, such as a plan to create a new, stricter regulator for Fannie Mae and Freddie Mac, the government-sponsored mortgage companies.

It was opposed, however, to other elements such as a $4bn (£2bn) allowance for local governments to buy foreclosed properties and the diversion of funds from Fannie Mae and Freddie Mac to pay for up to $300bn in guarantees for mortgages refinanced to reflect lower home values.

Financial Times