To Hold Press Conference On Comprehensive Housing Legislation
Press Release
In the wake of millions of home foreclosures across the United States, the US House of Representatives passed the most comprehensive response yet to the current mortgage meltdown - HR 3221, "The Foreclosure Prevention Act of 2008."
"This legislation will help families facing foreclosure keep their homes and help others avoid foreclosure in the future," Congressman Artur Davis said. "Buying a home is the largest investment most Americans will ever make and it is crucial to this fragile economy and to the American dream that we protect home ownership."
Representatives from the Birmingham Realtors Association, HUD, and the Birmingham Homeownership Center will join Congressman Davis in a press conference tomorrow at 1:30 p.m. at the Birmingham Realtors Association Headquarters in Homewood to discuss the legislation.
"The fact that I will be sharing the stage with spokespersons from all of these interests illustrates the fact that we can all come to a consensus on the importance of this legislation. The housing bill is just one example of what Congress can do when it works together in a bipartisan way to draft meaningful legislation that addresses issues Americans face," Davis said.
HR 3221 - The Foreclosure Prevention Act of 2008
Key parts of the legislation:
FHA Rescue and Neighborhood Stabilization
Provides mortgage refinancing assistance to keep families from losing their homes, to protect neighboring home values, and to help stabilize the housing market.
Strengthen Regulations of Housing GSEs
Creates a strong, independent regulator with the authority to set strong capital standards so markets can count on the safety and soundness of Fannie Mae and Freddie Mac.
Raises GSE loan limits to increase liquidity in the mortgage market and provides necessary stand-by authority to the Treasury Department to stabilize the market in the unlikely event that federal intervention is necessary.
Tax Provisions to Expand Refinancing Opportunities and Spur Home Buying
Gives first-time homebuyers a refundable tax credit that works like an interest-free loan of up to $7,500 (to be paid back over 15 years) to spur home buying and stabilize the market.
Supplies states with additional tax-exempt bond authority to refinance subprime loans, make loans to first-time homebuyers and to finance the building of affordable rental housing.
FHA Modernization and Preventing Future Abuses and Crises
Expands access to affordable mortgage loan opportunities and strengthens mortgage disclosure requirements to ensure that borrowers understand the terms of their mortgage.
Takes action to prevent future abuses by lenders by establishing a nationwide loan originator licensing and registration system.
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