Jump to content
House Price Crash Forum
Sign in to follow this  
Ash4781

Key Provisions Of U.s. Housing Rescue Bill

Recommended Posts

http://uk.reuters.com/article/gc03/idUKN23...0080723?sp=true

(Reuters) - With White House encouragement, Congress looks set to pass a housing rescue bill that will backstop Fannie Mae and Freddie Mac, create tougher oversight of the mortgage finance giants and spend billions to prevent home foreclosures.

The sweeping legislation is moving with uncommon speed and could be in place by next week. President George W. Bush and key lawmakers have said they hope the legislation will help restore confidence in a U.S. housing finance system battered by a wave of failing loans.

Following are some key provisions of the legislation:

* Fannie Mae and Freddie Mac, which each have a $2.25 billion (1.13 pounds) line of credit with the Treasury, would see their current government loan limit raised until January 2009.

* If the companies' financial condition were to reach a crisis, Treasury could take an equity stake in either company. That power, too, would expire in January 2009.

* There is a better-than-even chance that the emergency measures will not be needed, meaning there will be no cost to taxpayers. If the lifeline is required, the Congressional Budget Office said, there is a 5 percent chance that the companies may need $100 billion but more likely would need $25 billion.

* A new regulator would be created with broad powers to set capital levels for Fannie Mae and Freddie Mac, with the Fed's consultation.

* The Federal Housing Administration would be authorized to refinance up to $300 billion in failing mortgages with Fannie Mae and Freddie Mac covering billions in expected losses.

* Fannie Mae, Freddie Mac and FHA would be permitted to purchase loans as large as $625,500 in high-cost areas -- a big increase from the $417,000 cap typically in place.

* Local communities that are burdened with maintenance of abandoned properties would have access to nearly $4 billion in federal grants to buy and repair those homes.

* Many first-time home buyers would be eligible for a tax break worth up to $7,500, and $200 million would be offered to foreclosure-prevention programs

* Local governments would have authority to issue an additional $11 billion of tax-exempt bonds to refinance shaky loans.

* The bill would increase the federal debt limit by $800 billion to $10.6 trillion.

(Compiled by Patrick Rucker; Editing by Jonathan Oatis)

Will Brown put one of these together ?

Edited by Ash4781

Share this post


Link to post
Share on other sites

wasters.

They think they can stop the losses.

Market will say no in ways that will surprise!

Share this post


Link to post
Share on other sites
wasters.

They think they can stop the losses.

Market will say no in ways that will surprise!

Hyperinflationary collapse ahoy!

Like anyone with any sense every thought otherwise. Deflationsitas, wherefore art thou now?

Share this post


Link to post
Share on other sites
Guest DissipatedYouthIsValuable

This is going to be great to watch from another country.

Share this post


Link to post
Share on other sites
This is going to be great to watch from another country.

There is the possibility that we can default without too much fuss and blame it on the Yanks if they go tits up first.

Share this post


Link to post
Share on other sites
Guest DissipatedYouthIsValuable
There is the possibility that we can default without too much fuss and blame it on the Yanks if they go tits up first.

I reckon a global cluster of default may occur.

Share this post


Link to post
Share on other sites

Let me see, they lost money are just about broke.

They MAY get 100bn from the fed.

YET, they are going to take on 300bn in ailing loans???

Wheres me calculator??

Share this post


Link to post
Share on other sites
Let me see, they lost money are just about broke.

They MAY get 100bn from the fed.

YET, they are going to take on 300bn in ailing loans???

Wheres me calculator??

Fed + Bankers - proper checks and balances = HYPERINFLATION

Share this post


Link to post
Share on other sites
Fed + Bankers - proper checks and balances = HYPERINFLATION

Nah, the money wont go into circulation, its just like a bit of tippex on the balance sheets.

Share this post


Link to post
Share on other sites
Nah, the money wont go into circulation, its just like a bit of tippex on the balance sheets.

You are Ben Bernanke and I claim my $5m

(His theory is that you can print up loads of money and then close the banks so people can't access it and everything will be fine. Nutter.)

Share this post


Link to post
Share on other sites
You are Ben Bernanke and I claim my $5m

(His theory is that you can print up loads of money and then close the banks so people can't access it and everything will be fine. Nutter.)

My beleif is that fannie and freddie are now publicly owned Super SIVs.

the public have no access to them, although I suppose they could invest in them, including up to Jan 2009, unwillingly via the tax system.

This will just soak up more excess cash from Industry and the public, that clearly, from the trade figures, they dont need anyway :lol:

Share this post


Link to post
Share on other sites

The plan should be:

All houses bought by govt for 1c each. Instant social housing.

All banks and banking companies made to sort out their financial mess without further cost to the govt and public.

Personal debt needs resolving and bringing into line so over-debt can never happen again.

Gordon's going to have a plan though to bail out everyone and mr and mrs taxpayer will cough up.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.