Mortgage Rescue Plan
July 23, 2008
It was announced today the President Bush will back a bill in Congress that provide support for Fannie Mae and Freddie Mac, modernize the FHA and give a tax credit of $7,500.00 to first time home buyers. This bill is expected to pass the Senate and should be ready for President Bush to sign in the very near future. There is 300 billion in assistance being provided to troubled homeowners and throw in government support behind mortgage finance giants Fannie Mae and Freddie Mac. This is another major move by Congress and the White House to sure up the US real estate market which is in a steep decline.
White House spokesperson Dana Perino said :
"The positive aspects of the bill are needed now to increase confidence and stability in the housing and financial markets,"
This follows a recent survey of the California real estate market which shows foreclosures are up more than 250% from this same period as compared to last year and up over 30% from the last quarter. As more and more Californians loose their home, President Bush has been under increase pressure to do something. This bill will also allow the Federal Gov't to be a "back stop" to the GSE's Fannie and Freddie. Their financial health has fallen recently and some have speculated they are on the verge of bankruptcy. The Treasury will be allowed to provide an unlimited credit line for the next 18 months to Fannie Mae and Freddie Mac.
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