WASHINGTON - In a rare Saturday session, the Senate approved the massive housing rescue package, which includes provisions to bail out both troubled homeowners and secondary mortgage market giants Fannie Mae and Freddie Mac. The bill was signed into law last week by President Bush.
The most important provisions for credit unions would encourage billions of dollars in refinanced mortgages by providing federal backing through the Federal Housing Administration, as well as new tax breaks for first time home buyers.
The bill will also create new government-backing for Fannie and Freddie by raising the guaranteed lines of credit with the Treasury from the current $2.5 billion to as much as $300 billion each, and by allowing the federal government to buy stock in the two during times of crisis.
“While we have some reservations about certain segments of the legislation, we recognize overall that it is a major bill that should move ahead,” said NAFCU President Fred Becker. “Ultimately, we believe this groundswell of support sends a very clear, positive message to the president and we hope that he will see fit to sign this legislation directly.”
The bill also resurrects a long-stalled effort to create a new regulator for both Fannie, Freddie and the 12 Federal Home Loan Banks, provides $4 billion to states and municipalities to buy foreclosed properties; and provides $180 million to states for homeownership counseling.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
