U.S. House Passes Major Housing Rescue Bill

[cal04]

Source: Reuters

The U.S. House of Representatives on Thursday approved a bill to create a $300 billion mortgage-insurance fund and provide billions more in homeowner aid to stabilize a housing market shaken by a wave of foreclosures.

The bill would also offer a $7,500 tax credit for first-time home buyers. A separate measure passed on Thursday would send $15 billion to local communities hard-hit by the mortgage crisis to help them buy and fix abandoned homes.

The mortgage insurance fund, which would be overseen by the Federal Housing Administration, is expected to help 500,000 borrowers whose homes have dropped in value since they took out their mortgage. Under the program, lenders could get an FHA guarantee on the loan if they wrote down the principal amount.

While the White House has threatened to veto the sweeping bill, it supports some provisions and has left the door open to compromise.

Read more: http://www.nytimes.com/reuters/washington/politics-usa-housing-congress.html?_r=1&oref=slogin

[sinkingfeeling]

1. Wish somebody had given me a $7500 tax CREDIT for my first home.

[glowing]

3. Shit I bought a few months too early.. of course, I don't make enough

money to get back $7500.00 on a tax return.

[notesdev]

2. what was it called?

"The Investment Banker Bailout Act of 2008"? (or is that title already taken?)

[louis-t]

4. Stupidface sez he'll veto.

What a piece of crap he is. Probably wants more protection for bankers, less for consumers.

[midnight]

5. Does anyone know what this sentence is saying? Thanks.

Under the program, lenders could get an FHA guarantee on the loan if they wrote down the principal amount.

[JanusAscending]

6. It means that the FHA,

would guarantee the loans, be it sub-prime or variable interest loans,....if.........the banks would "write off" a portion of the loan. ie a much inflated loan of say $500,000 down to the present value of the property based on the lower values. A homeowner could possibly get the property reduced to it's real value, if the lenders agree. I hope this helps. I am a retired realtor.

[Earth_First]

7. So when do the prudent homeowners who purchased within their means

left the equity in their homes intact and live day to day based on what they earn get a break?