Rep. Tom Latham predicts the forced cuts could come back to haunt freshmen Republicans.

Foreclosure filings dropped 17 percent in January from the same month a year ago, the fourth straight month of declines, as repossessions slowed during the final few months of the year after lenders and all 50 state attorneys general reviewed the foreclosure process.

A total of 261,333 properties received notices of default, auction or seizure. It was the third consecutive month with fewer than 300,000 filings, following 20 straight months above that mark, according to RealtyTrac, the California-based data seller. 

Foreclosure filings last month rose 1 percent from December, according to RealtyTrac.

"Unfortunately this is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing," said James Saccacio, chief executive officer of RealtyTrac.

The administration's housing proposal is winning over more Republicans than Democrats thus far, as Rep. Maxine Waters (D-Calif.) aired concerns about the report and what it means for affordable housing.

The administration gave its take on housing finance Friday, calling for a winding down of Fannie Mae and Freddie Mac, and laying out three options for broad reform that all leave the housing market largely in private hands, with the government playing a small support role.

Waters responded to the report, saying she was afraid the proposals could "radically increase the cost of homeownership, and housing in general, over the coming years."

Hatch, who is expected to face a conservative primary challenger, got booed when he said, "I intend to get reelected."

A bipartisan group of lawmakers is criticizing the Financial Stability Oversight Council (FSOC) for debating matters that affect the insurance industry without the appropriate experts.

In a letter sent Thursday to Treasury Secretary Timothy Geithner and obtained by The Hill, the lawmakers expressed frustration that of the three positions of the FSOC reserved for insurance experts, only one has been filled.

Senate Minority Leader Mitch McConnell (R-Ky.) fired back Friday afternoon, saying Senate Democrats are the only ones actively talking about the possibility of a government shutdown if lawmakers can't reach an agreement on a stopgap measure to keep the government running.

"The only people talking about shutting down the government are a handful of Senate Democrats at a press conference today," McConnell said in an e-mail to The Hill.

Earlier today, Senate Democratic leaders said Republicans should take a government shutdown off the table as Congress faces a tight deadline to pass a measure funding the government beyond March 4. 

Senate Majority Leader Harry Reid (D-Nev.) and Chuck Schumer (D-N.Y.) reiterated to reporters that lawmakers need to sit down and work together on spending cuts. 

The postal service ran an $8.5 billion deficit last year, and lawmakers are scouring to find areas to cut.

Senate Democratic leaders urged Republicans on Friday to take the possibility of a government shutdown off the table as Congress faces a tight deadline to pass a stopgap measure. 

Senate Majority Leader Harry Reid (D-Nev.) and Sen. Charles Schumer (D-N.Y.) reiterated to reporters on Friday that lawmakers need to sit down and work together on spending cuts. 

"Republicans should rule out a shutdown and come together on a bipartisan plan," Schumer said during a conference call with reporters. "The House needs to send us a responsible CR [continuing resolution] proposal." 

The continuing resolution to keep the government running expires March 4. Between now and then, the House is in session for nine days, while the Senate is scheduled to be in session for 10 days, with Congress taking off a week for Presidents Day, leaving them with a short window to reach agreement on a bill.  

The trade gap widened in December for the first time in four months behind more oil imports, while exports also neared record levels. 

The nation’s trade deficit expanded to $40.6 billion, up 5.9 percent, from $38.3 billion in November, the Commerce Department said on Friday.

Excluding oil, which hit its highest deficit level since October 2008, the trade deficit improved. 

Imports and exports are hitting their highest levels in two years, with imports up 2.6 percent to $203.55 billion from $198.46 billion in November, the highest level since October 2008, providing a boost to the nation's economic recovery.