But Republicans in both chambers said they were not comfortable with a plan that would expose taxpayers to liabilities that ought to be borne by the companies' shareholders.
Sen. Jim DeMint (R-S.C.) said he was worried about a move to "socialize the mortgage industry."
Other Republicans, including Sen. Judd Gregg of New Hampshire, his party's top-ranking member on the Senate Budget Committee, said some members were worrying too much about abstract principles and not enough about the damage a collapse of the two companies could cause.
"I do think it's taking an ideological view in the face of a very practical problem, which if we don't address, we're going to be in real deep trouble," Gregg said.
Suggesting the possibility of compromise, Sen. Mel Martinez (R-Fla) said, "It is a bailout. But it's a necessary bailout.
"Obviously we can't just have it be a blank check, but I think there is a way for us to provide the kind of backing that Treasury is seeking with enough built-in safeguards to make it workable," Martinez said.
The administration's requests have been added to the provisions of an omnibus housing bill that has already passed both chambers of Congress and had been scheduled for a final vote this week.
Those votes are now not expected until next week.
Republicans had agreed to a trade-off in the bill -- the establishment of a new regulator for Fannie Mae and Freddie Mac, which would have the authority to set higher capital requirements in return for a measure extending government guarantees for about $300 billion in refinanced mortgages for homeowners facing foreclosure who meet strict requirements.
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maura.reynolds@latimes.com
richard.simon@latimes.com
