Bush Inks Massive Mortgage Relief Bill

Legislation Intended As Lifeline For Struggling Homeowners And Shaky Financial Markets

(CBS/ AP)  President Bush on Wednesday signed a massive housing bill intended to provide mortgage relief for 400,000 struggling homeowners and stabilize financial markets.

Bush signed the bill without any fanfare or signing ceremony, affixing his signature to the measure he once threatened to veto, in the Oval Office in the early morning hours. He was surrounded by top administration officials, including Treasury Secretary Henry Paulson and Housing Secretary Steve Preston.

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

The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.

It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.

The House passed the bill a week ago; the Senate voted Saturday to send it to the president.

Bush didn't like the version emerging from Congress, and initially said he would veto it, particularly over a provision containing $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.

But he withdrew that threat early last week, saying hurting homeowners could not wait — and even blaming the Democratic Congress' delays in action for forcing an imperfect solution.

Meanwhile, many Republicans, particularly those from areas hit hardest by housing woes, were eager to get behind a housing rescue as they looked ahead to tough re-election contests. Paulson's request for the emergency power to rescue Fannie Mae and Freddie Mac helped push through the measure. So did the creation of a regulator with stronger reins on the government-sponsored companies, as Republicans long have sought.

Democrats won cherished priorities in the bargain: the aid for homeowners, a permanent affordable housing fund financed by Fannie Mae and Freddie Mac, and the neighborhood grants.

The bill takes several approaches to curing the ailing housing market.

It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.

The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.

The plan also is designed to relieve a broader credit crunch that has taken hold because of rising defaults and falling home values. To free up safer and more affordable mortgage credit, the bill permanently would increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. They also could buy and back mortgages 15 percent higher than the median home price in certain areas.

It goes far beyond addressing the current crisis, however.

The legislation overhauls the Depression-era FHA. It requires lenders to show how high a borrower's payment could get under the terms of his mortgage. It provides $180 million in pre-foreclosure counseling for struggling homeowners.

The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new "consultative" role overseeing the companies.

The measure includes $15 billion in tax cuts, including a significant expansion of the low-income housing tax credit and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.

Democratic leaders, recognizing that the measure could be one of the last items to become law during what's left of their abbreviated election-year schedule, tacked on an $800 billion increase, to $10.6 trillion, in the statutory limit on the national debt.

Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.

[amarjit5]

Thank you Mr Bush

[pirmin3]

The rich lenders get bailed, the irresponsible borrowers get bailed and Joe Play By the Rules gets the shaft, as usual with this administration.

[infe5]

I played by the rules, have excellent credit, and bought my first home at age 24. It is a modest 1300 sq. ft. house with with a fixed 6.1% mortgage. I demand that my rate is decreased by the same amount as others who are getting relief under this bill. If irresponsible people are getting what amounts to thousands upon thousands of dollars EACH for making stupid decisions, I would like the same benefit for acting responsibly. Oh wait, I keep forgetting this is the U.S. we take from those who pay their own way and give to those who dont deserve it. I wont even get in to the idiocy of bailing out the two biggest mortgage companies WHO HAVE NOT EXCUSE FOR THEIR IRRESPONSIBILITY. Let those who screw up (citizens or companies) learn from their mistakes.

[jtdev1]

infe5 - Love your post, even agree with it, but you have to remember that this "Rescue Plan" isn''t really for the home owner, it''s for the corporation, the banks, the investors...

Can you imagine what kind of hoops the home owner will have to jump through just to get some help? Have you ever dealt with any government program? I''d be suprised if it helps 1-10th of what they are saying.


The only thing this massive bailout is going to do is protect the investments of the investor until they have time to liquidate their investments (at a good price) and then our government will buy the stock at an inflated price and then it will go down.

It always happens like this...

[jesterbelle]

The only reason republicans went along with this is because it''s affecting the jerks that vote for them.They don''t want to **** off their constituency by allowing their million dollar homes to become $750,000 homes.Anybody that votes republican that doesn''t net a half a million a year is a moron that is just *** theirself.

[americandad2]

Play by the rules and pay for the fools

[americandad2]

Play by the rules and pay for the fools

[infe5]

"Eatshit.I''''ve already lost my house,thanks to the climate created by the "responsible" S.O.Bs. you helped to vote in.Go tell them your problems,a$$hole.I''''m sure they''''ll listen." - Posted by jesterbelle

Big surprise there given the nature of your post. Place blame on anyone or anything but yourself right? If the "climate" is so bad, why havent I lost my house eh? Because I was smart and you werent. Wake up and do better next time instead of insulting me you twit.

[jesterbelle]

You borrowed more than you could repay and it''''s somoeone else''''s fault?

Oh, okay. . .




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Posted by tuckerndfw at 08:39 AM : Jul 30, 2008

Big surprise there given the nature of your post. Place blame on anyone or anything but yourself right? If the "climate" is so bad, why havent I lost my house eh? Because I was smart and you werent. Wake up and do better next time instead of insulting me you twit.


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Posted by infe5 at 08:38 AM : Jul 30, 2008

No,pissants,I didn''t borrow too much.I was actually doing fine before you helped to elect the chimp,but hospital bills(no insurance),rising COL,and stagnant wages did me in.I only had five years left on a fifteen year note.*** was I supposed to do,wotk three jobs and still not make ends meet?I hope like hell you clowns get to go through what I did,and from the way things are looking,I may just get my wish.Maybe you won''t be so quick to look down your noses at the people that already have.

[hungry1968]

So the neo cons are against socialism for the public, who ended up in financial trouble due to NO FAULT OF THEIR OWN, (job loss, catastrophic illness, etc)....

--BUT--

they''re 100% behind socialism for extremely wealthy big business, that lost BILLIONS through their own dirty dealings, and are STILL rewarding their CEO''s with MASSIVE salaries and related perks?

[antoniof123]

If you like this mess that a Republican they seem so interested in keeping it going.

[jesterbelle]

TO: jesterbelle at 08:50 AM : Jul 30, 2008

If you had not overextended yourself, you could have sold your house because you would have made a down payment that reduced the debt far below market value.

And, then you could have moved into something you could afford or perhaps public housing if you were totally broke.

It is YOUR fault you borrowed more than you could repeay and no one else''''s.

Period.


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Posted by tuckerndfw at 08:54 AM : Jul 30, 2008

KMA,stupid.It was only a $65,000 note at 7%.I couldn''t refinance it because of unpaid hospital bills.I guess I should have just pitched a tent in the ffucking city park and done with out a house,according to you.DC is going to lose control one of these days,sonnyboy,and it is going to be a pleasure shooting a$$holes like you.

[marshall_nee]

I''m sick and tired of politicians and central bankers Hyperinflating us ALL into poverty, just to bail out the greedy Financials'' and irresponsible borrowers.

[infe5]

"KMA,stupid.It was only a $65,000 note at 7%.I couldn''''t refinance it because of unpaid hospital bills.I guess I should have just pitched a tent in the ffucking city park and done with out a house,according to you.DC is going to lose control one of these days,sonnyboy,and it is going to be a pleasure shooting a$$holes like you."- Posted by jesterbelle

Clearly this individual is a level-headed, upstanding, person. Their posts in no way reveal a mindset of victimhood and violent projection of entitlement. (please read with heavy dose of sarcasm)

[jesterbelle]

Clearly this individual is a level-headed, upstanding, person. Their posts in no way reveal a mindset of victimhood and violent projection of entitlement. (please read with heavy dose of sarcasm)


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Posted by infe5 at 09:05 AM : Jul 30, 2008

Well excuse the hell out of me for facing the truth about things as they are.Quick,somebody wave a flag and give me a glass of red,white,and blue Koolaid!I''m losing my illusion of freedom!

[dinkydog1]

KMA,stupid.It was only a $65,000 note at 7%.I couldn''''t refinance it because of unpaid hospital bills.I guess I should have just pitched a tent in the ffucking city park and done with out a house,according to you.DC is going to lose control one of these days,sonnyboy,and it is going to be a pleasure shooting a$$holes like you.


Posted by jesterbelle at 09:00 AM : Jul 30, 2008

...............................

I know exactly what you mean, hospitals can charge anything they want and there''s nothing you can do about it. Can''t pay, lose your credit. Too bad we can''t end this foolishness and have nationalized health care like the rest of the civilized world. But unfortunatly those like tuckerndfw will keep circulating the socialism, rationed care myths and keep us in the stone age.

[omega39-2009]

The only thing this massive bailout is going to do is protect the investments of the investor until they have time to liquidate their investments (at a good price) and then our government will buy the stock at an inflated price and then it will go down.

It always happens like this...


Posted by jtdev1

You''re right, this is only a gimmick to transfer ownership of devaluating assets from the banks to the taxpayers while making sure the investors get theirs.

[infe5]

"Well excuse the hell out of me for facing the truth about things as they are.Quick,somebody wave a flag and give me a glass of red,white,and blue Koolaid!I''''m losing my illusion of freedom!"-Posted by jesterbelle

Hey, life is just dandy for me. I max contributions to a retirement plan, have health insurance, have a rainy day fund, and own my house with no worries. I am not gloating, but rather setting you up for the following question: Why do you suppose I am able to have these things? I am not rich; I was not born with a silver spoon in my mouth. It is because I worked hard and made smart decisions in my 27 years of life so far. I plan for disasters so that I may overcome pitfalls. Stop blaming others for YOUR shortcomings

[jesterbelle]

TO: jesterbelle at 09:00 AM : Jul 30, 2008

REFINANCE?

You were broke and you wanted to REFINANCE?

You should have sold the house, used the money to pay off your other bills and then moved into public housing along with all the other poor people.

See how easy that is?

Taxpayers have no obligation to keep people in houses they can''''t afford.

BTW, I''''ve lived in neighborhoods where people bought houses they couldn''''t afford and it really sucks because they don''''t maintain them. They can barely afford the payments, much less taking care of routine maintenance such as mowing their yard.

Maybe you learned a valuable lesson but it appears you did not since you blame everyone but YOU.




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Posted by tuckerndfw at 09:08 AM : Jul 30, 2008

I sold the house,pinhead,and believe me when I say that I will never buy another.I was trying to do the right thing,*******.You think I want gonernment aid?I''ve got news for you,********.I don''t want anything from them but their downfall.I don''t even work "on the books" anymore,so that I don''t help to finance my worst enemies.

[marshall_nee]

tuckerndfw, very good. Now I shall watch my FRE and FNM stocks value go up.

Posted by GOP_forever at 09:01 AM : Jul 30, 2008

I would sell them soon, they''re heading for nationalization, when the higher ARM rates that kick in during August result in more defaults.

[tbweb]

Pres. Bush signed this Bill because he is politically weak and it takes some of the heat off! Pres. Bush wanted to Veto this Bill and this is why it`s not good for America to have a weak President in office, America should support the President or remove them if the President is too weak politically. The same is true in foreign affairs, a weak President has to give away too much, it`a also a National Security risk to have a weak President who may be gun shy because of their political weakness!

[walt1944-2009]

What no one is saying is that it will take MONTHS before homeowners see any relief from this bill. By then how many homes are going to go into foreclosure and how many families thrown out on the streets by the banks and the LAW?

And, of course, the government is going to handle this, like they handled the Iraq War, the war in Afghanistan, Katrina, etc., etc.

Like it or not, no matter what ANYBODY says, THE BUSH DEPRESSION IS HERE!!!!!!!!!! AND THE DEPRESSION WILL CONTINUE UNDER ASSUMED GREAT EMPEROR "SURRRRRRRGE" MCCAIN!!!!!!!!

SIG HEIL, BUSH!!!!
sig heil, ABSOLUTELY MORE OF THE SAME, McCain!!!!

[caitlinndad]

cardboard ... thats the answer ...

[jesterbelle]

Hey, life is just dandy for me. I max contributions to a retirement plan, have health insurance, have a rainy day fund, and own my house with no worries. I am not gloating, but rather setting you up for the following question: Why do you suppose I am able to have these things? I am not rich; I was not born with a silver spoon in my mouth. It is because I worked hard and made smart decisions in my 27 years of life so far. I plan for disasters so that I may overcome pitfalls. Stop blaming others for YOUR shortcomings


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Posted by infe5 at 09:13 AM : Jul 30, 2008

Sorry,Bub.Go spread your BS elsewhere.Let''s wait until the collapse of the stock market wipes out your retirement,and then see what tune you''re singing then.Not going to happen?Funny how those in control have been talking about how rosey things are for the last year,and yet it gets worse and worse.

[infe5]

"Sorry,Bub.Go spread your BS elsewhere.Let''''s wait until the collapse of the stock market wipes out your retirement,and then see what tune you''''re singing then.Not going to happen?Funny how those in control have been talking about how rosey things are for the last year,and yet it gets worse and worse."-Posted by jesterbelle

So you sit around, hoping for disaster, so that others may suffer. Try this instead, get off your sorry tail and make something of your life. With every post you make it becomes abundantly clear why you are in your present circumstances. It''s clear to me, if not you; which is unfortunate.

[hungry1968]

You''''re right, this is only a gimmick to transfer ownership of devaluating assets from the banks to the taxpayers while making sure the investors get theirs.

Posted by omega39 at 09:11 AM : Jul 30, 2008





The worst part about this, is that the banks are not only getting bailed out now, but they''re going to REALLY make out in the future.

Who holds the deeds on these foreclosed houses? The banks. They''re getting PAID for the foreclosure, even though they still own the house.

When the housing market recovers, (after Obama wins the election), and the bank sells the house, who gets the money? The bank or the taxpayer?




For example, let''s say a $100,000 house is sold. The homeowner pays on it for 5 years @ $1000 / month. That''s $60,000 the bank made.

Then the house gets foreclosed, and the government bails out the bank. They make EVEN more money off the taxpayer, AND STILL OWN THE HOUSE.

Next year, they sell the house for $100,000 - AGAIN. They REALLY have the potential to DOUBLE (or more) their money on ONE piece of property.




And this is beneficial to America and our interests?

[whitemale08]

...this is a perfect example of "supply-side" economics.

The evil bankers SUPPLY the credit for all of these McMansions because the high paying jobs were destroyed by Ronald Reagan backin the 80''s

Then you celebrated Republican George Bush who DEREGULATED everything so that the "DEMAND" was created for unaffordable housing.
Then you unleashed "bubbles" Greenspan to devalue the so called "dollar" to 1% to destroy savings and create "TEASER RATES".

As a result the worse "inflationary bubble" since Weinmar Germany sets in with houses going to $300,000 on avereage with no "real wage increase".

Then Republican George W. Bush announces that "flipping burgers was now manufacturing" and "overtime workers were considered supervisors" to qualify people for the mortgage applications.

Then right before the "bubble" POP, the bankers secretely privatized their profits under "tax cuts for the rich" and sent them to offshore accounts in Dubai and elsewhere.

Now it''s time to socialize the losses with bailouts of "Fannie and Freddie" which will cause Bernanke to raise interest rates to protect the value of Wall''s Streets profits which means Fannie and Freddie are meant to go bankrupt anyways.

Thanks Ronnie and Bush.

[fstop100]

let the loan companies that offered these sleazy loans go bankrupt and let the homeowners have their houses. the ceo''s of these companies are raking in millions while the hard working people lose their houses.

[stn_sage]

This HAS to be a bitter moment for the decider-in-chief!

He sat around for months watching the collapse of the housing market and doing nothing! Other than, chide Congress to come up with the solution!

And when they did, like usually, he said he''d veto it!

But facing the real possibility of a landslide defeat for his party, his fellow republiCONS urged him to sign this legislation and at least give them something to claim they did to help recify the situation---that they CAUSED!

But the truth is: Bush and the GOP could care less if American families lose their homes! The sad part is: half of American families haven''t figured that out!

[edward1975-2009]

The idea of offering homeowners a way out is fine, we will see a return on that. But as far as bailing out businesses that made bad decisions, that stinks. They should suffer the consequences for their poor decisions. They have learned nothing other than the government will bail them out. Again at the taxpayers expense.

[thgdriver]

I knew I should have purchased that mansion I wanted but could not afford. Damnn now it''s too late. I could have had the tax paying suckers garantee it at lower rates.

[setumstrt9]

Great!!

Now I get to pay my mortgage payment, and a payment for some loser that spent too much on a house!!!!

[omega39-2009]

And this is beneficial to America and our interests?

Posted by hungry1968

No, but it''s good fore the haves and have mores, Bush''s base.

[jydavis1]

this bill will help the economy big time.. the stock market is up, the dollar is rebounding and corporations are adding jobs.. everything will be fine for president Mccain. God bless the US of A !

[payasyougo]

And in a year, Bush will be remembered for the budget deficit that our grandchildren will still be paying.

[xyno-2009]

Raygun was just as bad as Bush, if not worse.

Posted by tuckerndfw at 10:05 AM : Jul 30, 2008

==========================

Reagan layed the foundation for the prosperity that this country has enjoyed over the last 20+ years. Get a clue.

[checkthepast]

your gross worth. (hehehe. . .)

Posted by tuckerndfw

My worth is already pretty gross....

[checkthepast]

Christ, if anything you should be...

Posted by prometheus41

I didn''t see Christ''s post.....

[lochlan-2009]

Now Bernanke can increase interest rates, raise the value of the dollar and drop the cost of commodities. Bush and cronies must have put their easy money into shorting oil, etc., for more easy money, to actually sign this bill. We know it has nothing to do with helping out Americans, since that was his initial reason for not wanting to sign it at first.

[credibility2]

As a responsible homeowner, I deeply resent being stuck with yet another government handout and bailout to predatory lenders and fiscally irresponsible individuals who went after something they weren''t entitled to begin with due to their hideous finances. So, why isn''t the government quick to reward those of us, the vast majority, who have done everything right and aren''t being a lodstone to the its resources? Congress and the feds are corrupt and only care about the so-called disenfranchised banks, lenders, investors and the irresponsible homeowner.

[nolalou]

Credibility2, while I understand your frustration, and agree with you on baling out unscrupulous lenders, many of the homeowners were the victims here. Doing nothing is not really an option, 400,000 foreclosures could have a devastating effect on the housing market, and could bring down all our property values. (who wants to live in a neighborhood with dozens of foreclosed, empty houses)

Something needs to be done in the future to keep these bad loans from being made in the first place.

[messiahx4eve]

You want sympathy for political parties? BOTH democrats AND republicans are responsible for who and what has happened today. As far as communism goes, look up the word before you go slinging as "bad". True communism is NOT bad. Both the former Soviet Union and China are Facist or autocratic in government, NOT COMMUNIST. We are NO LONGER a capitalistic society either, we are a truly divided country, while the government runs things their way, WE, THE PEOPLE, LIVE IN THE REAL WORLD.

[hotpaulie]

terrorislamv - What would Theodore Roosevelt say about President Bush?

[xyno-2009]

Posted by tuckerndfw at 10:18 AM : Jul 30, 2008

===========================

Maybe you''d prefer a third party reference? From Newsweek:

To his worshipers, Ronald Reagan''s great economic achievements were tax cuts and spending restraint. Not so. Reagan''s singular feat was supporting Paul Volcker''s Federal Reserve in suppressing double-digit inflation, which had destabilized the economy (four recessions between 1969 and 1982). From 1980 to 1983, inflation dropped from 13 percent to 4 percent. This set the stage for the long expansions of both the 1980s and 1990s.

[papabc]

OK,, I bought my House, did not over extend my finances or run up credit card debt. My 401Ks are, for now, sound inventments.

So it seems I beheaved myself, like many of my friends. Never bankrupted. Will I benefit from this relief bill. Can I refinance my home at 1/2 the interest rate that it is at now? Can I get a 2.5% fixed loan?

OR

Will my taxes go up to pay for those that did not plan or make sound financial decissions?

[jtdev1]

Has anyone read the new law? See all the hoops a home owner would have to jump through???

As I said: This law has NOTHING to do with helping the homeowener, and has EVERYTHING to do with helping the banks.


Read the law and see for yourself!

[papabc]

Posted by jtdev1
Has anyone read the new law? See all the hoops a home owner would have to jump through???

As I said: This law has NOTHING to do with helping the homeowener, and has EVERYTHING to do with helping the banks.

Read the law and see for yourself!
-----------------------------------------------------

So what you write seems right. All this time we thought we elected people to represent citizens, not corporate America or illegal immigrants.

Guess we do not give enough bribes to be represented.

[lochlan-2009]

"THE TAXPAYERS BAILING OUT THE PERPETRATORS OF FRAUD,,,"

If you mean the lobbyists to the corporations that the GOP represent, who robbed this countries treasury to the tune of trillions of dollars worth of IOU''s, after receiving a huge surplus from Clinton, then you are dead right. If you people could pull your head out of your *** you''d see the damage you''ve done to this country and its citizens, with your support of the largest heist in history by the Bush/Cheney Regime. You bootlickers have gotten so bad you support the rampant corruption and spending in your party, because you know to do otherwise would mean admitting how wrong you people were these last several years, and how much that cost the rest of us.

I think all citizens who voted for Bush and party should get a moron tax to pay off the debt he gave to every single American in this, THE LARGEST HEIST IN HISTORY!!!!

[missingamerica]

terrorislamv - why do you not admit the truth: Republican fiscal and economic policies created this mess? Republican legislative actions that biased bankruptcy laws to favor the financial industry gave that industry the brass ballz to write junk loans? And on and on and on?

Why do you Republicans never accept the responsibility for the negative consequents of your greed-motivated "there is too much regulation!" crybaby whining?

Are you fiscal cowards as well as chickenhawks?

[mbcsmith]

I think all citizens who voted for Bush and party should get a moron tax to pay off the debt he gave to every single American in this, THE LARGEST HEIST IN HISTORY!!!!


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Posted by lochlan at 11:01 AM : Jul 30, 2008



Where exactly did you say you received your degree in economics from?

Had the Feds not guaranteed debt, what do you think would happen to the financial system if Fanie and Freddie failed?

By the way, there is no certainty that this bill will even cost $1. It is a guarantee NOT a payment!