Mortgage news

News, trends and analysis of the mortgage and credit market

Saturday, July 26, 2008

Senate passes crucial bill to help mortgage borrowers

July 26, 2008
On Saturday July 26, 2008 the Senate overwhelmingly passed a landmark housing bill that will offer up to $300 billion in loans for troubled homeowners and establish a government rescue plan for mortgage giants Fannie Mae and Freddie Mac.

The bill has two principal objectives: to offer affordable government-backed mortgages to homeowners at risk of foreclosure, and to bolster Fannie and Freddie with a temporary rescue plan and a new, more stringent regulator.
  • Establish a stronger regulator for the GSEs

  • Permanently increase "conforming loan" limits to a maximum of $625,500 from $417,000.

  • Create home-buyer credit: a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500.

  • Bar down-payment assistance for FHA loans

  • Create an affordable housing trust fund: a permanent fund to promote affordable housing.

  • Give grants to states to buy foreclosed properties: grant up to $4 billion to states to buy and rehabilitate foreclosed properties.

  •  Read 

    Best Rated Mortgage Companies

    Email this article to a friend | Subscribe to our Mortgage News


    Post a Comment

    Subscribe to Post Comments [Atom]

    << Home