Now comes the latest salvo in the political wrangling over what the government should and shouldn't do about the housing slump, credit crunch and foreclosure problem: The House yesterday passed a measure to have the FHA insure billions in refinanced mortgages.

The Los Angeles Times, which notes that President Bush has "threatened a veto," reports in today's story:

At the center of the legislation is a measure that would allow the Federal Housing Administration to insure up to $300 billion in refinanced mortgages if lenders agree to write down the loan principal below the home's current appraised value. The plan would help an estimated 500,000 homeowners avoid foreclosure.

The measure would cost about $2.7 billion, according to the Congressional Budget Office.

Another provision, with particular relevance to states with high home costs, would permanently raise to $729,750 the limit for mortgages that government-sponsored holders Fannie Mae and Freddie Mac can buy.

I know some of you have strong opinions about government housing efforts thus far. For your reading pleasure, click HERE to see a list of recent federal actions and proposals.