Congress could pass housing aid by next week: White House

WASHINGTON (Reuters) - Congress should be able to approve legislation aimed at shoring up mortgage lending giants Fannie Mae and Freddie Mac by next week and has an existing housing bill as a vehicle, the White House said on Wednesday.

"We still believe that Congress will be able to get it done next week," said White House spokeswoman Dana Perino. "The feedback we've gotten is actually quite positive although I know there have been some who have said they need a little bit more time."

The Bush administration, in close coordination with the Federal Reserve, this week unveiled several steps to backstop the two mortgage lenders, including lines of credit, access to the Fed's discount borrowing window and possible government share purchases.

Some of the proposals have drawn some skepticism from U.S. lawmakers, particularly about unlimited lending to Fannie Mae and Freddie Mac.

"I think the urgency of the situation underscores the fact that we need them to move quickly," Perino told reporters. She also said the two mortgage giants have not accessed the credit lines that were made available to them.

Congress has been considering housing legislation that includes strengthening the regulator for the two mortgage lending companies. The White House has threatened to veto the Senate-passed measure because it also includes $4 billion in block grants to states to buy foreclosed homes.

(Reporting by Jeremy Pelofsky, Editing by Neil Stempleman)