Despite earlier promises to veto any housing bill that rescued "irresponsible homeowners," President Bush signed into law a massive housing bill that is the largest government intervention in the housing industry in at least a generation, and likely since the New Deal of the 1930s.
The bill has a two-pronged approach: it provides guarantees and backing for Fannie Mae and Freddie Mac, two of the nation's largest mortgage security companies (which account for nearly half of the 12 trillion dollar housing industry), and it also provides relief for homeowners facing loss of homes to foreclosure by allowing them to replace their troubled loans with more stable government-backed loans.
The bill also contained a measure to increase the Treasury's borrowing capacity.
The bill increases the national deficit by a projected $800 billion, to over $10 trillion.
Tags: Fannie Mae, foreclosure, Freddie Mac
This entry was posted on Wednesday, July 30th, 2008 at 12:00 pm and is filed under Bankruptcy and the Economy, Mortgage Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
I need to know if my name on a loan for a house is going to mess up my bankruptcy? My name is coming off the deed