Housing Rescue Bill Clears Senate
The US Senate on Saturday passed a comprehensive bill designed to help prevent foreclosures and to extend additional credit to two of the nation’s leading mortgage lenders.
The Housing and Economic Recovery Act of 2008 passed by a vote of 72-13. The House approved the measure on July 23rd. The Bill has been sent to President Bush who is expected to sign it.
Some of the key provisions of the bill include the following:
* $300 billion in loans to help distressed homeowners refinance their mortgages into more affordable 30 year fixed loans backed by the government. The measure is expected to help some 400,000 thousand Americans to keep their homes. Of note, in return for refinancing a loan, borrowers agree to give the Federal Housing Administration a share in the profits of the home’s future appreciation.
*A tax break of up to $7,500 for first-time homebuyers. Eligible first time buyers are those who purchase between April 9, 2008 and July 1, 2009 and who haven’t owned a home in three years.
*Authorizes the United States Department of The Treasury to provide increased credit to Fannie Mae and Freddie Mac and creates a new regulator, the Federal Housing Finance Agency, to provide additional oversight of these mortgage lenders.
*Provides $4 billion in grants to states and local communities to buy abandoned and foreclosured properties.
*Establishes an Office of Housing Counseling to provide counseling and educational material for people applying for mortgages.
Sources:
http://www.house.gov/apps/list/press/financialsvcs_dem/press0723082.shtml,
http://biz.yahoo.com/brn/080728/26169.html?.v=1,
http://www.npr.org/templates/story/story.php?storyId=92826335
