Huge Housing Bill Goes to President Bush

Washington, DC, July 27, 2008--The Senate approved a comprehensive housing bill on Saturday designed to support the struggling U.S. housing market and as well as mortgage buyers Fannie Mae and Freddie Mac.

The bill includes billions of dollars in loan guarantees, a tax break for first-time home buyers and many other provisions. It was overwhelmingly approved, 72-13

President Bush has indicated he will sign it despite objections about a provision directing $4 billion in emergency aid to local communities to buy and rehabilitate foreclosed homes.

The measure allows homeowners who cannot afford their monthly payments to refinance into government-backed loans. The bill also offers temporary financial help to Fannie Mae and Freddie Mac.

The bill won approval in the House on Wednesday by a vote of 272-152, overcoming Republican objections about extending an unlimited line of credit to the two government-sponsored mortgage-finance titans.

The bill contains a tax break of as much as $7,500 for first-time home buyers, creates a new regulator to oversee Fannie Mae and Freddie Mac and allows the government to insure up to $300 billion in refinanced mortgages.

House Financial Services Committee Chairman Barney Frank, D-Mass., said the overall bill deals with a housing crisis brought about by "bad decisions and inaction and malfeasance from years before."

The plan would extend an unlimited line of credit to the two mortgage-finance giants for 18 months and give the Treasury the authority - also for 18 months - to buy Fannie and Freddie shares if the Treasury deems the companies' capital to be inadequate.