Senate to Approve Measure

The Senate voted 72 to 13 to approve the latest hoiusing bill to halt the steep slid in housing pricies and keep hundreds of thousands of families from foreclosure.  President Bush is planning to sign off on the deal this coming week.

Unfortunately, the bill won’t be helping all homeowners.  These are the facts:

1. Approximately 5.5 million home loans are predicted to default by 2009 but the bill will only help 400,000 foreclosures.
2. 8,500 families a day are falling into foreclosure
3. 1 out of every 8 homes are projected to enter foreclosure within the next 5 years.
4. The new housing bill will give the Federal Housing Administration $300 billion and relax lending standards to provide affordable and fixed rate loans to 400,000 debt-ridden homeowners.  Losses will be covered by Fannie Mae and Freddie Mac.
5. The new housing bill will also allow the Treasure Department to lend money to Fannie Mae and Freddie Mac and set to expire at the end of the year 2009.
6. The housing bill will create more affordable housing by permanently raising the limit on loans to $625,000 in high-cost areas.
7. The new housing bill will include $3.9 billion in grants to the hardest-hit communities to buy and fix foreclosures.
8. There will be a one-year moratorium forbidding the FHA from charging premiums based on the riskiness of the homeowner, until October 2009.
9. The bill would provide $15 billion in housing tax breaks.
10. The housing bill will give credit of up to $7,500 for first-time home buyers who buy a residence between April 9, 2008 and July 1, 2009.
11. The bill will also allow people who don’t itemize their taxes to claim a $500-$1,000 deduction on their 2008 property taxes.
12. The housing bill will offer protection from investor lawsuits for mortgage holders that modify loans to borrowers who are or about to default.
13. The housing bill will also provide $180 million for pre-foreclosure (short sale) counseling and legal services for distressed borrowers.
14. The bill will also give states an additional $11 billion in tax-free municipal bond authority for low-interest loans to first time home buyers and refinancing subprime mortgages.