Bush Okays Housing Foreclosure Rescue Plan
Despite earlier promises to veto any housing bill that rescued "irresponsible homeowners," President Bush signed into law a massive housing bill that is the largest government intervention in the housing industry in at least a generation, and likely since the New Deal of the 1930s.
The bill has a two-pronged approach: it provides guarantees and backing for Fannie Mae and Freddie Mac, two of the nation's largest mortgage security companies (which account for nearly half of the 12 trillion dollar housing industry), and it also provides relief for homeowners facing loss of homes to foreclosure by allowing them to replace their troubled loans with more stable government-backed loans.
The bill also contained a measure to increase the Treasury's borrowing capacity. The bill increases the national deficit by a projected $800 billion, to over $10 trillion.
Keep posted to Total Bankruptcy's articles page for more on the housing bill and how it affects you.