President Bush on Wednesday signed into law a massive housing finance package intended to stabilize financial markets and the battered housing sector.

The Senate cleared the legislation 72-13 on July 26, ending months of back and forth between the chambers and the two parties. Bush signed the bill without fanfare.

The package marks the most robust congressional response thus far to ongoing problems in the housing market, where foreclosures continue to rise as home prices fall and Wall Street struggles to deal with asset-backed securities that now are difficult to value .

The compromise legislation includes provisions to help borrowers get out from under loans they cannot afford, offers a one-time tax credit of up to $7,500 to first-time home buyers and throws a lifeline to struggling mortgage finance giants Fannie Mae and Freddie Mac.

The House sent the legislation to the White House on Tuesday. Bush vehemently opposed one provision, providing $3.9 billion in grants to help states and localities buy up and rehabilitate foreclosed properties.

But the measure also includes two White House priorities: a backstop for Fannie and Freddie and creation of a strong new federal regulator for the two companies empowered to set capital levels and limits on their mortgage portfolios.

Treasury Secretary Henry M. Paulson Jr. worked closely with key lawmakers to craft the final compromise, and repeatedly urged Congress to expedite action in order to stabilize the turbulent financial markets.

Senate Banking Committee Chairman Christopher J. Dodd, D-Conn., met Tuesday with Paulson, Federal Reserve Board Chairman Ben S. Bernanke, FDIC Chairman Sheila Bair and Housing and Urban Development Secretary Steven Preston. The senator said all four assured him they would be able to implement by its Oct. 1 effective date the program in the bill to help borrowers at risk of losing their homes to refinance their mortgages.