Bush Signs Foreclosure Rescue Bill
In the last ditch effort to address the foreclosure rise as well as the decline in home prices, US President George W. Bush finally signed the very controversial housing bill that basically involve a foreclosure rescue package. It actually took a long time for this bill to be approved as never-ending debates waged on between legislators.
The said package includes the granting of $4 billion to states so that they could buy and then repair foreclosure properties. In addition, Freddie Mac and Fannie Mae are set to be rehabilitated in order for these federal institutions to be managed better. They will be prepared for the accommodation of the $300 million provision that will help distressed homeowners shift to government-backed loans in order to avoid foreclosure.
Although this law has been opposed by the Bush Administration in the beginning, the decision to do was reversed since the new legislation included several key housing reforms that the Administration has been supporting. It also included offering of tax breaks for buyers, setting up of national licensing system for loan officers and mortgage brokers and increasing the ceiling of mortgage amount that the federal agencies Freddie Mac and Fannie Mae can guarantee.
The signing of the law coincided with the record decline of home prices from last year and the drop in the Standard & Poor’s / Case Shiller composite index for 20 metro areas. The index fell by 15.8 percent compared to May 2007.
It was signed in the Oval Office at 7 am this morning by the President together with the economic team, headed by Treasury Secretary Henry Paulson, who played a major role in the negotiation between the Democrats and Republicans.
Every American is hoping that the signing of the foreclosure rescue legislation will be a big step toward the end of the foreclosure crisis and recovery of the nation.