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.

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

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.

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.