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Bush signs housing rescue plan into law

by Dave Keating | July 30, 2008 at 03:30 am

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President Bush signed into law this morning a massive housing bill that will provide mortgage relief for 400,000 struggling homeowners.

The bill, which Bush once threatened to veto, was signed with no fanfare or ceremony.

As home foreclosures rise and property values slump, U.S. President George W. Bush on Wednesday signed into law a rescue package that includes emergency backstops for mortgage financing companies Fannie Mae and Freddie Mac.

Despite opposition to a provision that offers $4 billion in grants to states to buy and repair foreclosed homes, Bush reversed his opposition to the overall legislation because it included numerous other key housing reforms.

The new law boosts oversight of Fannie Mae and Freddie Mac, which own or guarantee almost half the country's $12 trillion in home mortgage debt. It also expands a temporary line of U.S. Treasury credit and gives the government the option to buy shares in them if they ran into trouble.