Bush Signs Housing Bill
Today, Wednesday, July 30, 2008 President Bush signed the housing bill that is suppose to help 400,000 homeowners while aiding in stabilizing the financial markets that have been declining due to the housing market.
The bill that Bush had stated he would veto was signed in the Oval Office with only a few key officials present such as Henry Paulson, Treasury Secretary and Steve Preston, Housing Secretary.
White House Spokesman, Tony Fratto stated that, “We look forward to put in place new authorities to improve confidence and stability in markets,” and went on to say that the Federal Housing Administration would begin immediately to implement the new policies that will keep Americans in their homes.
The bill is been regarded as the most important housing legislation seen in decades that will allow homeowner you for whatever reason cannot afford their mortgage payments refinance their homes into affordable government backed loans which will allow them to keep their homes.
Along with this measure, the bill will also temporarily give a lifeline to Fannie Mae and Freddie Mac while reducing the controls of these businesses.
The bill was passed in the House last week, the Senate voted Saturday, and then it was sent directly to the president.
The one portion of the bill that caused President Bush to want to veto it was the provision for $3.9 billion in neighborhood grants. He believes this money will benefit the lenders, which refused to work with homeowners originally to save their homes instead of foreclosing. However, he decided he would sign the bill in order to aid the homeowners due to the fact that the Democratic congress would take forever in negotiating the grant provision and American homeowners need help now.
The bill goes as far as requiring lenders to show how high a mortgage can go under the terms of their mortgage, provides $180 million in pre-foreclosure counseling for homeowners, the Treasury Department has unlimited power until December 2009 for lending money to Fannie Mae and Freddie Mac or the power to buy their stock if needed, and also includes a nice $15 billion in tax cuts, for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.