- What's in the Bill
Major provisions of the housing bill, which is designed to help homeowners stay out o foreclosure and keep mortgage giants Fannie Ma and Freddie Mac afloat:
Foreclosure avoidance
Will help an estimate 400,000 homeowners avoid foreclosure by refinancing into 30-year fixed rate loans backed by the FHA. To qualify, borrowers would have to be spending more than 31% of their monthly incomes on the mortgages and living in the homes. Borrowers would also to share any profit with the government if they later sell the homes. Any lender would have to write down loan principal. Will insure up to $300 billion in mortgages; program starts Oct.1 and ends Sept. 30, 2011.
Aid for buyers
First-time buyers are offered refundable tax credits of up to $7,500 for homes bought between April9, 2008, and April 1, 2009.
Counseling
Provides $180 million for financial counseling for homeowners facing foreclosure.
Loan limit
FHA loan limit is raised in high-cost areas from 95% to 115% of area median home price, up to $625,500
Neighborhood help
provides $4 billion in grants for buying and renovating foreclosed properties in hardest-hit areas.
New Manager
A new independent regulator is established for Fannie Mae and Freddie Mac and federal home loan banks to strengthen their oversight.
More Credit
The Treasury Department is authorized to increase its credit line for Fannie Mae and Fredie Mac and buy stakes in them, if needed.
Higher debt
Raises federal debt limit from 9.8 trillion to $10.6 trillion.
Sources: U.S. Senate and House, Associated Press, Reuters
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