Congress Passes Housing Rescue Bill
It appears Congress has passed a housing rescue bill today hopefully saving 400,000 struggling homeowners from foreclosure. Although President Bush had originally threatened to veto such a bill, it appears he is expected to sign this measure quickly.
The legislation was passed by the Senate vote of 72-13.
Homeowners, who are unable to afford their current monthly payments will be able to refinance with more affordable government-backed loans, rather than lose them to foreclosure. Fannie Mae and Freddie Mac will be provided a temporary financial lifeboat by this bill, and it tightens controls over them.
Mortgage loan limits will be increased caps to $625,000 – on loans that Fannie Mae and Freddie Mac can buy, and the Federal Housing Administration can insure.
Although this bill may seen by many as a costly bail-out, for those that got us in to the housing crisis, the alternative of doing nothing would be costlier.
We can only hope that out of all this, increased oversight or regulation will return to the lending business, after it’s long absence. We need to get the foxes out of the hen house. Otherwise, we will be experiencing Deja Vu’ all over again, a few years downwind.
Written for GreatWest GMAC
by: Myrl Jeffcoat
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