US House passes home legislation

Kenya News.Net
Wednesday 23rd July, 2008

The US House has pushed through legislation which is designed to help 400,000 distressed homeowners avoid foreclosure.

The bill, which passed on a 272-152 vote, will also ensure the survival of troubled mortgage companies Fannie Mae and Freddie Mac.

The vote was rushed through after President Bush dropped his opposition to the bill, which should now pass the Senate and become law within days.

While the White House was concerned the measure would give $4 billion in grants to entire neighborhoods overwhelmed by the mortgage crisis, it has also received the power to save Fannie Mae and Freddie Mac.

Struggling borrowers have been reassured by the vote, inasmuch as the bill provides grants for homeowners, a permanent affordable housing fund financed by the two mortgage companies and the money for hard-hit neighborhoods.

The grants are for buying and fixing up foreclosed properties.

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