Congress Passes Bill To Help Hundreds Of Thousands Of Homeowners

[babylonsister]

Congress Approves Housing Rescue Bill


JULIE HIRSCHFELD DAVIS | July 23, 2008 05:38 PM EST | AP
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WASHINGTON — Rescue legislation sailed through the House Wednesday aimed at helping 400,000 strapped homeowners avoid foreclosure and to prevent troubled mortgage giants Fannie Mae and Freddie Mac from collapsing.

The 272-152 vote reflected a congressional push to send election-year help to struggling borrowers and to reassure jittery financial markets about the health of two pillars of the mortgage market.

Hours before the vote, President Bush dropped his opposition to the measure, which is now on track to pass the Senate and become law within days.

The White House swallowed its distaste for $3.9 billion in grants the bill would provide for devastated neighborhoods. The Bush administration gains the power to throw a lifeline to Fannie Mae and Freddie Mac as part of the measure that also is designed to rein in the government-sponsored mortgage firms.

The administration and lawmakers in both parties teamed to negotiate the measure, which accomplishes several Democratic priorities, including federal help for homeowners, a new permanent affordable housing fund financed by Fannie and Freddie and the $3.9 billion for hard-hit neighborhoods. The grants are for buying and fixing up foreclosed properties.

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http://www.huffingtonpost.com/2008/07/23/congress-approves-housing_n_114613.html

[bluerum]

1. I have my doubts. My bet is that the lions share of this will be consumed

by FM & FM and their various mortgage subsidiaries in order to "compensate" them for the loans that are being defaulted on. Whatever is left may trickle down to homeowners.

I don't support bailing out these corporations. If congress wanted to help the homeowners, they should have passed a bill that targets the homeowners. This is corporate socialism (nationalism) on the grandest of scales.

How stupid we are for footing this bill.