Bush signs housing bill

WASHINGTON • President Bush signed a housing bill Wednesday intended to rescue about 15 percent of the cash-strapped homeowners in fear of foreclosure in the next year or so.

The president signed it without fanfare early in the morning in the Oval Offce.

“We look forward to put in place new authorities to improve confidence and stability in markets,” White House spokesman Tony Fratto said. He said the Federal Housing Administration would begin to put in place new policies “intended to keep more deserving American families in their homes.”

The legislation is regarded as the most signiffcant housing bill in decades. Among the key provisions, the measure:

• Gives the Federal Housing Administration $300 billion in new lending authority and relaxes standards to provide affordable, fixed-rate mortgages to an estimated 400,000 debt-ridden homeowners. Any losses will be covered by an affordable housing fund financed by Fannie Mae and Freddie Mac, the governmentsponsored companies that finance mortgages.

• Allows the Treasury Department temporary authority to lend money to Fannie and Freddie or buy their stock to avert a collapse of one or both of the mortgage giants. The authority expires on Dec. 31,
2009.

• Creates a new regulator and tighten controls on Fannie and Freddie.

• Provides $3.9 billion in grants to the hardest-hit communities for buying and fixing up foreclosed property.

• Provides $15 billion in housing tax breaks, including for low-income housing. Gives a credit of up to $7,500 for first-time homebuyers who purchase residences between April 9, 2008, and July 1, 2009. Allows people who don’t itemize their taxes to claim a $500 to $1,000 deduction on their 2008 property taxes.