The American Dream for homeownership is being reignited. President George Bush, Jr has signed into law a bill sponsored by Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing and Urban Affair, to slow down the foreclosure crisis that is happening throughout the United States.
The Housing and Economic Recovery Act of 2008, which authorizes the Department of the Treasury to purchase obligations of housing Government Sponsored Enterprises (GSEs); reforms the regulatory supervision of the housing GSEs; provides reform of the Federal Housing Administration; provides homeownership assistance and reforms to mitigate recent increases in foreclosures; and contains housing-related tax incentives and other tax provisions.
Dodd's HOPE for Homeowners Act 2008 is targeted at FHA financed homeowners. These homeowners if facing foreclosure could be eligible to have their FHA loan refinanced under a new Federal Housing Administration program. These homeowners must find a lender who is willing to write down the original loan and write a 30 year fixed rate loan.
Also the big dogs will oversee the big three government sponsored enterprises, Fannie Mae, Freddie Mac and Federal Home Loan Banks under the Federal Housing Finance Regulatory Reform Act of 2008. A new board has been created under the FHA program consisting of the Secretary of HUD, the Secretary of the Treasury, the Chairman of the Federal Reserve Board, and the Chairman of the Federal Deposit Insurance Corporation (FDIC).
The Act appears to place all these agencies under one umbrella in hopes of preventing future homeowners on the low end from sub prime lenders. Homeowner who would not fit in the low income category will be eligible to participate in this program to refinance. Allowing those on the high income a second chance to maintain their home that would have otherwise went into foreclosure.
No comments:
Post a Comment