According to an article by CNN last Thursday, (click here) the Senate had recently reached new strides in the plans to pass a comprehensive bill on housing and foreclosure prevention, after months of debate. The bill would create a new government-backed foreclosure prevention program, as well as bolster the oversight of Freddie Mac and Fannie Mae. Before the housing bill is actually passed and completed, a final debate is still likely to take place in the House
By Friday July 11th, The U.S. Senate passed an extensive package of housing legislation, reacting to the continuing erosion of home prices and growing foreclosures by taking their most aggressive step yet to address the housing crisis. According to the Wall Street Journal's article (click here):
"Despite the vote, which came after weeks of political wrangling, House and Senate lawmakers will still need to overcome a number of impediments before President George W. Bush can sign the bill into law."
"Senators voted 63-5 in favor of the package of tax relief for homeowners, changes to the Federal Housing Administration, and a $300 billion program to refinance mortgages headed toward foreclosure into affordable loans."
James B. Lockhart, OFHEO Director said in their press release:
“I congratulate and thank Chairman Dodd, Ranking Member Shelby and the Senate for passing a sound and comprehensive GSE regulatory reform bill. This bill should help restore confidence in the housing markets by creating, on passage, a new, stronger regulator with all the necessary tools to oversee Fannie Mae, Freddie Mac and the Federal Home Loan Banks. I am hopeful the House will act quickly and the bill will soon be enacted into law.
With this very turbulent market it is important to strengthen the regulator of Fannie Mae and Freddie Mac and combine it with the regulator of the Federal Home Loan Banks as soon as possible as all of these GSEs are being asked to do more and more to support the mortgage market.”
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