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American
Homeowners Grassroots Alliance
Legislative Alert!
Soon after returning from the Independence Day
recess, the
U.S. Senate is expected to vote on a major housing rescue bill that was
approved by the Senate Banking Committee. With home values plummeting at
alarming rates in many parts of the country, housing foreclosure rates
setting new records every month, and up to 6 million American homeowners
at risk of foreclosure, this legislation is vitally needed, and it is
needed NOW!
The Senate Banking Committee’s measure, passed by a 19 to 2 margin,
authorizes the FHA to allow at-risk borrowers to trade mortgages with
escalating monthly payments for more affordable loans backed by the
federal government. It would also set national licensing standards for
mortgage professionals, and create a new regulator which would have the
authority to set limits on the massive portfolios of Fannie Mae and
Freddie Mac, based on a safety and soundness standard. Approximately
$500 million a year of Fannie and Freddie’s profits would be dedicated
to a new fund for low-income rental housing, beginning after the third
year. Profits from the first three years would be earmarked in order to
cover the cost of the FHA program and reduce potential losses. The text
of the bill is at
http://banking.senate.gov/public/_files/FinalGSEBilll.pdf .
Supporters estimate that the Senate bill would help about 500,000
homeowners.
There have been ongoing negotiations between the bill’s supporters and
opponents. It is possible that some of the current provisions may be
altered to gain wider support, and also possible that there will be a
hard-fought and close Senate floor vote on the Senate Banking
Committee’s bill. Either way, Senate passage of the bill in some form is
essential in order to allow the Senate and House of Representatives to
begin the process of working out the differences between the version of
the bill that has already passed in the House, and whatever the Senate
passes this week. The House bill has additional beneficial provisions,
including a $7,500 refundable first-time home buyers tax credit, a $10
billion increase in state’s authority to issue tax-exempt bonds for the
purposes of refinancing subprime loans, providing loans to first-time
home buyers, financing the construction of low-income rental housing and
increasing low-income housing tax credits.
Please click on the Contact Your Federal and State Legislators link at
on the upper left on our home page and key in your state to find the
contact points for both of your U.S. Senators. Then call or email them
immediately asking that they vote in support of the Housing bill this
week. Please act now – the value of your home and the future of millions
of American homeowners are at stake!
Serving the interests of the nation's 75 million
homeowners and future homeowners since 1984.
The American Homeowners Grassroots Alliance is a nonpartisan consumer
advocacy organization dedicated to assisting the nation's 75 million
homeowners understand significant policy issues affecting homeowners and
homeownership, and empowering homeowners to make their voices heard by
state and federal officials.
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