The Bill passed the House and is on its way to the Senate. Then to the President to Sign into Law. Then the lenders assimilate it into their 'rule books' Before it is ready for the homeowners. It is still a few months from being offered to the homeowner who needed it yesterday! My opinion is; If the lenders are somehow compensated for their 'hair cut' (reference blog 4/18/08) it will workout good in the end......
If you are interested in keeping up on furture develments on this bill please leave a comment below or send a message to my e-mail address geraldine@workingforyou.net
House OKs bill to forestall foreclosures, help homeowners
Rep. Barney Frank's bill gained strong support from rank-and-file Republicans, despite a veto threat. Getty Images photo by Mark Wilson
(05-09) 04:00 PDT Washington --
The House of Representatives approved an ambitious plan Thursday to rescue hundreds of thousands of homeowners at risk of foreclosure by helping them trade loans with rapidly rising monthly payments for more affordable mortgages backed by the federal government.
Bucking a White House veto threat, 39 Republicans joined Democrats in supporting the bill, the centerpiece of a broader housing package that represents Washington's most aggressive response to the nation's housing crisis.
The measure, which passed 266-154, is intended to unfreeze mortgage markets by expanding the Federal Housing Administration's reach and strengthening mortgage giants Fannie Mae and Freddie Mac. It also would create a $7,500 tax credit for first-time home buyers to try to boost sales and slow falling home prices.
GOP House leaders blasted the bill as a bailout for speculators and irresponsible borrowers. But the measure, sponsored by House Financial Services Committee Chairman Barney Frank, D-Mass., gained strong support from rank-and-file Republicans worried that escalating foreclosures are ruining lives and devastating neighborhoods.
Despite President Bush's condemnation of the bill earlier this week, White House officials also seemed to leave the door open to negotiation. And in the Senate, key Republicans are working with Democrats on a similar plan.
"People are in a world of hurt. My sense is there's maneuvering room," said Rep. Fred Upton, R-Mich., whose state has been among those hardest hit. "There's still a good chance they'll get a bill the president can sign, knowing that a lot of the country needs help."
More than 1.2 million homes are in foreclosure, and an additional 3 million are forecast to join them over the next two years. Home prices have fallen more than 10 percent, and state and local tax collections are suffering. Polls show the economy is the top concern among voters, with one in four saying they have been directly affected by problems in the housing market.
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