Senate Passes Housing Bill, Teeing Up Clash on Investor Ban (1)

The US Senate on Thursday passed a bipartisan bill aimed at boosting the nation’s supply of homes on an 89-10 vote, setting up a showdown in the House over a contentious provision to limit Wall Street’s footprint in the housing market.

The bill bars investors with more than 350 houses from purchasing additional single-family homes — a late change to the legislation that was critical to getting the White House on board, Senate Banking Committee Chairman Tim Scott, a South Carolina Republican, told reporters last week.

Builders and mortgage lenders oppose a specific provision of the investor restrictions. While ...