Housing Bill
WASHINGTON, D.C.- Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs, announced that the Senate passed the Housing and Economic Recovery Act by a vote of 72-13.
This legislation is expected to help hundreds of thousands of Americans who are struggling to keep their homes, as well as countless homeowners and communities who are already experiencing the devastating effects of foreclosure. The legislation also contains comprehensive reforms to our nation’s housing sector, including the creation of a strong, new regulator for the government-sponsored enterprises. In response to recent turmoil in our financial markets, the bill also includes provisions requested by the Treasury Department to restore confidence in Fannie Mae and Freddie Mac.
The Housing and Economic Recovery Act – the most comprehensive housing legislation in over a generation – is the product of months of bipartisan, bicameral collaboration. The bill will now be sent to the President, who has said he will sign it.
Sounds great, right? Well, not so fast… Here is the bottom line; per the new law, Down Payment Assistance (nonprofits DPA as we knew it) is out, gone. Meaning that thousands of families that otherwise qualify for a mortgage can not purchase a home now due to lack of down payment.
This is now officially law which will go into effect October 1, 2008. To be honest with you, I have not read the 600+ pages of law.
If you want to read the FHA section of the bill, click on the link below. FHA starts on page 477 and the down payment assistance info is on page 481. http://www.rules.house.gov/110/text/110_atostohto3221.pdf
If this law is not modified the consequences will be devastating!By FHA’s own estimates, DPA comprises nearly 40% of FHA’s volume. This means more than 300,000 working class families will be locked out of homeownership in the next year alone. Communities across America will take the brunt of the $50 billion in lost real estate sales, not to mention the indirect impact on the real estate, mortgage and building sectors that will be forced to shed tens of thousands of jobs due to this dangerous legislation. It would ravage your local economy by bringing the housing sector to a screeching halt.
Act now! Please click this link to sign the petition: http://www.rallyforhomeownership.org/. The only way to get this overturned/modified is by our voices!