The Federal Housing Finance Regulatory Reform Act
of 2008 establishes a new regulator for Fannie Mae
and Freddie Mac, as well as the Federal Home Loan Banks.
The new regulator powers include establishing standards
for management, including audits, internal controls, and
portfolio management; reviewing processes for new products
offered; restricting growth and distributions for undercapitalized
institutions; and removing officers and handing down monetary
penalties, when necessary.
The Housing Assistance Tax Act of 2008 provides
for emergency assistance for abandoned and foreclosed
properties. The Act also includes provisions for first-time
home buyers to receive refundable tax credits for purchases
made during April 1, 2008 through July 1, 2009. The tax
credit (up to a maximum of $7,500) is phased out for taxpayers
with income above $75,000 ($150,000 for joint returns).
The tax credit is then repaid over 15 years in equal payments
as a surcharge on the taxpayers' yearly income tax.
The HOPE for Homeowners Act of 2008 covers mortgages
made on or after October 1, 2008 through September 30,
2011. The Act authorizes insurance on up to $300 billion
for owner-occupants only who are unable to pay their mortgage
payments. The homeowner must certify that they are not
intentionally defaulting to qualify for the program assistance.
Loans that qualify must be 30-year, fixed-rate refinance
loans up to the lesser of 90% of the current value or
the amount the borrower can afford based on current requirements
set by the FHA.
The Foreclosure Prevention Act of 2008 is intended
increase access for home ownership in all areas of the
nation by increasing the FHA loan limit from 95% to 110%
of the median home price for a particular area. Community
Development Block Grant Funds, $3.92 billion worth, will
be provided to areas with the highest rates of foreclosures
in order for those communities to purchase foreclosed
properties at a discount and redevelop the properties
to mitigate declines in housing values.
These are but a few of the many provisions of the Housing
and Economic Recovery Act of 2008. For further information,
contact the various government sponsored enterprises mentioned.
