On Capitol Hill this week, it looks like all the work on real estate, housing and mortgage issues is getting done in the House, while the Senate can't seem to get its act together to pass even a single bill.

Here's what I mean:

  • If you believe that the FHA mortgage program is an important resource for consumers -- especially first-time home buyers and loan applicants with less-than-perfect credit -- then you probably favor passage of the FHA Modernization Act.

    That bill would cut downpayments and increase FHA maximum mortgage amounts to serve high cost areas of the country -- like California and parts of the East Coast. It would also pump up the FHA program in most other parts of the country.

    The modernization legislation passed the House with flying colors in September, but it's stuck in the Senate because a handful of senators don't really believe in a vigorous, low-cost, low-downpayment program backed by the federal government.

    They blocked the modernization bill last year, and they're in no hurry to get it done this year, despite FHA's key role right now in helping families with unaffordable adjustable-rate subprime mortgages refinance into fixed-rate loans they CAN afford.

  • The same is true for comprehensive mortgage and appraisal reforms. The House passed a bipartisan bill that would require licensing and national origination standards for all mortgages and appraisals.

    But the Senate hasn't even introduced its own reform bill, and shows no signs of taking up the House bill anytime soon.

  • Now to taxes: Do you favor a change to the tax code that would prevent the IRS from demanding income taxes from financially-stressed families who've lost their homes to foreclosure -- and had a portion of the loan debt forgiven by their lenders?

    Well, the House has passed a comprehensive tax bill that would do that -- along with extending relief from the Alternative Minimum Tax for millions of home owners. But the Senate hasn't taken up the issue at all, much less debated the House's bill.

  • Do you favor allowing home buyers who pay monthly private insurance, FHA insurance or have VA-guaranteed loans, to deduct their premiums when they file their federal income tax returns? Well, the House's tax bill authorizes deductions through tax-year 2014.

    Where's the Senate? Nowhere in sight.

    What's the problem? Well, you've probably noticed that a lot of senators are running for president. They're in places like Iowa and New Hampshire and South Carolina this Fall -- rather than on Capitol Hill pushing for needed legislation.

    Chris Dodd of Connecticut heads the key committee that is in charge of all housing and mortgage legislation. But he's moved his whole family to Iowa to campaign, so he's basically been AWOL when it comes to housing or real estate issues.

    That's the Washington Report from Realty Times for this week. Check back again next week for updates.