Mortgage bill moves in Senate

WASHINGTON (4/9/08)—The Senate voted 92 to 6 Tuesday to proceed to a vote on final passage on a bill that would provide $4 billion to cities for the purchase and rehabilitation of foreclosed properties.

The bill, known as The Foreclosure Prevention Act of 2008, would provide another approximately $13 billion in targeted tax breaks to spur additional home buying and ease the troubles of the housing industry.

It also would authorize $200 million for housing counselors to help families about to lose their homes to foreclosure.

The Credit Union National Association supports a higher allocation for housing counseling and will be working to encourage the House to increase that level before the bill gets final approval by both houses of Congress.

Although the package contains a limited FHA reform provision, Senate Banking Committee Chairman Christopher Dodd (D-Conn.) has stated he wants more, such as adding loan guarantees of up to $400 billion.

Dodd has scheduled a hearing on Thursday on foreclosure mitigation and liquidity in the mortgage markets.

Also this week, the House Financial Services Committee on Wednesday and Thursday will hold hearings to address "Using FHA (Federal Housing Administration) for Housing Stabilization and Homeownership Retention."

courtesy of cuna.org