Morning Readings -- housing bill要点:
Congress Passes Housing Bill
By MICHAEL R. CRITTENDEN
July 26, 2008 1:06 p.m.
- the bill, which includes tax breaks for homeowners，a $300 billion program
to refinance loans for struggling borrowers, and a dramatic rescue plan for
embattled mortgage finance firms Fannie Mae and Freddie Mac. Other
provisions include an increase in the federal debt limit to $10.6 trillion
and long-sought reforms to the Federal Housing Administration.
- The centerpiece of the legislation is a program of up to $300 billion
of FHA-insured mortgages to help refinance cash-strapped borrowers into
affordable loans. The program would rely on lenders voluntarily writing down
the value of a distressed loan for the homeowner to qualify for the new FHA
-backed loan, and in return borrowers would have to share future price
appreciation with the federal government.
- George W. Bush has said will sign the bill despite voicing earlier
misgivings about certain provisions of the legislation.
- An affordable housing trust fund to increase the supply of rental
housing
- Raise the size of loans eligible for purchase by Fannie Mae and Freddie
Mac to 115% of the local area median home price, with a nationwide ceiling
of $625,000 for loans.
- Also included is an emergency plan authored by Treasury Secretary Henry
Paulson over the last two weeks. The plan would expand the $2.25 billion
lines of credit the firms have with the Treasury, as well as allow the
Treasury to take an equity stake in the government sponsored entities.
- It also includes tax relief for future homebuyers and current
homeowners. Those buying a home between April of this year and through June
of next year would receive a tax credit for 10% of the value of their home,
up to $7,500, while current homeowners who do not itemize their tax returns
would be able to deduct up to $1,000 for property taxes.
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