CBS: Mortgage Bailout ‘May Fall Short’ Because of Republicans

In a news brief on Thursday’s CBS "Early Show," co-host Russ Mitchell reported: "Homeowners struggling to pay the mortgage may soon be getting help from Congress -- Congress, rather, but efforts may fall short." Correspondent Wyatt Andrews went to explain why the measures may not help enough people: "Senate leadership believes it finally has a tentative deal in place to help some, but certainly not all, distressed homeowners stay in their homes...Senate Democrats wanted a much larger package, reaching tens of thousands more homeowners, but compromised with Republicans to get this deal done."

Andrews went on to describe the overwhelming desire for a government bailout plan while also pitting Wall Street against main street: "As Congress took off for the last two weeks, both parties took heat at home for doing nothing, letting average Americans absorb the loss of their homes while losses at Bear Stearns, $29 billion worth, were being absorbed by the Fed." Andrews followed with a clip of Democratic Congresswoman Carolyn Maloney: "Wall Street has been helped. Now it's time to help main street."

At the end of the segment, Andrews proudly declared: "...here's what's changed. According to Senate Banking Chairman Chris Dodd, inaction by the Congress at this point simply isn't an option."

Here is a full transcript of the segment:

7:07AM SEGMENT:

RUSS MITCHELL: Homeowners struggling to pay the mortgage may soon be getting help from Congress -- Congress, rather, but efforts may fall short. CBS News Correspondent Wyatt Andrews has details. Wyatt, good morning.

WYATT ANDREWS: Good morning, Russ. You're right, under tremendous public pressure to finally get something done about the housing crisis, Senate leadership believes it finally has a tentative deal in place to help some, but certainly not all, distressed homeowners stay in their homes. With several thousand homes still going into foreclosure every day, Senate leaders have put the rush on a package of ideas to stop the downward slide in home values.

CHRIS DODD: The confidence building was a critical issue for us here.

ANDREWS: Some of the details include $10 billion for states to help refinance subprime mortgages. $4 billion for localities to buy homes in foreclosure. And $100 million for counseling to help homeowners to avoid default. The biggest idea for home buyers is a $7,000 tax credit for anyone buying a new home, a home in default, or a home in foreclosure. Senate Democrats wanted a much larger package, reaching tens of thousands more homeowners, but compromised with Republicans to get this deal done.

DODD: This effort that we've put into the last several days I think is a major step in the right direction of offering some real hope to people on main street.

ANDREWS: As Congress took off for the last two weeks, both parties took heat at home for doing nothing, letting average Americans absorb the loss of their homes while losses at Bear Stearns, $29 billion worth, were being absorbed by the Fed.

CAROLYN MALONEY: Wall Street has been helped. Now it's time to help main street.

ANDREWS: The Fed Chairman, Ben Bernanke, appeared before Congress, telling members that recession is possible and that fixing the slump in home prices has to be a priority.

BEN BERNANKE: I do think Congress needs to be looking at housing. It's, I think it is the center of the situation, the center of the problem at this point.

ANDREWS: The full details of this Senate plan go to the full Senate today. And action on this, including debate over amendments, could take weeks. But Russ, here's what's changed. According to Senate Banking Chairman Chris Dodd inaction by the Congress at this point simply isn't an option.

MITCHELL: Wyatt Andrews on Capitol Hill. Thank you very much.

ANDREWS: Thanks, Russ.