Speaker of the House Nancy Pelosi countered the Republican proposal with a $2.5 trillion bill that would put a halt on mortgage payments for up to a year as Americans deal with the fallout of COVID-19.
The bill, according to a report from Bloomberg, said it would order the Federal Reserve to provide loan servicers with liquidity to allow borrowers to stop paying mortgages for up to 360 days.
Bloomberg adds that public housing residents would get temporary relief from rent and student loan borrowers would have $10,000 of debt forgiven.
To support homeowners and address the industry impact that COVID-19 may have, under the direction of the National Mortgage Servicing Association (NMSA), leaders from across the mortgage industry are joining forces to create the COVID-19 Mortgage Industry Task Force (ITF) to coordinate on processes, procedures, and policies related to the crisis.
More than 25 mortgage banks and nonbank servicers, legal professionals, and service providers will take part in the coalition.
A bill presented by Senate Majority Leader Mitch McConnell was blocked Monday by Senate Democrats, as several Democrats voiced concern that the $1.8 trillion plan lacked transparency and oversight.
“The Senate Republicans’ bill, as presented, put corporations first, not workers and families. Today, House Democrats will unveil a bill that takes responsibility for the health, wages, and well-being of America’s workers: the Take Responsibility for Workers and Families Act,” Pelosi said in a statement.
The Speaker of the House said the new legislation requires that any corporation that takes taxpayer dollars must protect their workers’ wages and benefits.
Pelosi told CNBC Tuesday morning during an interview that there is “real optimism” a deal could be reached sometime on Tuesday.
“We believe that is not only good for the works, the right thing for the country but also good for the economy,” she said.
The Washington Post reported that Steven Mnuchin, Secretary of the U.S. Department of the Treasury, said Tuesday morning there are a “small number of issues” needed to be wrapped up, but added, “we are looking forward to closing a bipartisan deal today.”
News of a possible stimulus bill brought stocks to their best percentage gains since 1933. The Dow Jones on Tuesday rose 11%—2,112.98 points—to 20,704.91. The S&P 500 grew 9.4% and had its best day since 2008.
The Nasdaq Composite increased 8.1% for its best day since March 13. Both the Dow and S&P 500 were coming off their lowest levels since late 2016.
CNBC states the Dow fell 582.05 points, or 3%, on Monday to a new three-year low. It was on pace for its worst calendar month since 1931.