US lawmakers aim to save property market
Rescue housing bill passed in the US
Thursday, 24 Jul 2008 09:25
US lawmakers has passed a bill designed to rehabilitate the country's struggling property market.
Following an announcement from president George Bush stating he would no longer oppose the measures, despite personal reservations, the bill passed by 272 votes to 152 in the House of Representatives.
The bill must now pass Senate inspection before being signed into law.
A key element of the new is the provision of some $4.0 billion (£2 billion) to help local governments buy and rehabilitate foreclosed homes.
The funds will be employed to allow those who cannot finance their mortgages and are facing repossession to remortgage with the use of fixed-rate loans provided by the Federal Housing Administration.
Over a million Americans are thought to have lost property as the ravages of the subprime sector drag the market into the worst crisis since the Great Depression of 1931.
Furthermore, the legislation permanently boosts the dollar limit for mortgages that can be repurchased by loan guarantee organisations Fannie Mae and Freddie Mac, as well as expanding the federal mortgage insurance program.
It is hoped this will add liquidity to the housing market and improve confidence.
Also included are provisions to establish a national register for mortgage brokers for the first time, and a tax break of as much as $7,500 (£3,750) for first-time buyers.
Chris O'Toole