May 30 (Bloomberg) -- Newly delinquent mortgage borrowers outnumbered people who caught up on their overdue payments by two to one last month, a sign that nationwide efforts to help homeowners avoid default may be failing.

The Senate Banking Committee approved legislation Tuesday that would empower the Federal Housing Administration to provide relief to mortgage borrowers teetering on the brink of default. The House has already passed similar legislation. Only two months ago, mortgage aid was viewed as unlikely, but the odds now favor it becoming law. For this change of fortune, the legislation's chief sponsors, Sen. Chris Dodd of Connecticut and Rep. Barney Frank of Massachusetts, should thank one person in particular: Federal Reserve Chairman Ben Bernanke.

In mid February, Congress gave beleaguered mortgage borrowers a rare cause for celebration. As part of the economic stimulus package, it passed rules intended to make it easier and less expensive for people to take out hefty loans in the nation's costliest housing markets.

Seven out of 10 troubled mortgage borrowers remain without a plan to work out their loans despite increased industry efforts to help them, according to a new report from a coalition of state attorneys general and banking regulators.

CHARLOTTE, N.C. — Amid deteriorating conditions in some housing markets, Wachovia Corp. on Friday said it will change the way it evaluates potential mortgage borrowers, including requiring minimum credit scores and requiring verification of assets and employment.

Amid deteriorating conditions in some housing markets, Wachovia said Friday that it will change the way it evaluates potential mortgage borrowers, including requiring minimum credit scores and employment verification.

Just as subprime mortgage borrowers were teased into taking out loans they later could not afford when the interest rates spiked, scores of municipalities, schools, hospitals and even museums are now facing soaring interest payments on unconventional bonds that proved too good to be true.

The Senate on Thursday rejected a Democratic proposal that would have rewritten bankruptcy law to help struggling mortgage borrowers, while moving ahead with debate on a housing market rescue bill that includes a $6 billion tax break for home builders.

Congress passed legislation Tuesday to protect mortgage borrowers from getting a surprise tax bill when they restructure their loans to avoid foreclosure.

WASHINGTON (Reuters) - The Federal Reserve Board on Tuesday proposed new protections for high-cost mortgage borrowers to avoid a repeat of the loose lending standards that have put many Americans at risk of losing their homes.