Bush Signs Housing-Relief Bill Into Law

By DAMIAN PALETTA

July 31, 2008; Page A16

WASHINGTON -- President George W. Bush signed a housing-rescue bill into law Wednesday, completing Congress's ambitious legislative effort to head off rising foreclosures and stabilize jittery financial markets.

The law is wide-ranging and could have a big impact on home buyers, lenders and investment banks, and an even bigger effect on housing-finance giants Fannie Mae and Freddie Mac.
The Bush administration is counting on Fannie and Freddie to bolster the housing market by providing funds for the bulk of all home loans. But data released by Fannie on Wednesday underscored the risks both companies face from losses on mortgage defaults. Fannie said payments were 90 days or more overdue in May on 1.30% of the single-family home loans it owns or guarantees, up from 1.22% in April and 0.62% a year earlier.

Read Full Article on WSJ.com

Lawmakers Agree on Outline of Big Housing Pact

Bill Includes Relief For Fannie, Freddie; Tense Negotiations

By MICHAEL R. CRITTENDEN and DAMIAN PALETTA
July 23, 2008; Page A3

WASHINGTON -- House and Senate leaders have largely hammered out a compromise deal on a mammoth housing package that would permit the government to bolster Fannie Mae and Freddie Mac in an emergency, overhaul supervision of the housing-finance giants and allow the government to insure up to $300 billion in refinanced mortgages.

The deal comes after tense negotiations and is likely to remain a source of contention when the House of Representatives votes Wednesday. The nonpartisan Congressional Budget Office said Tuesday that a temporary measure to prop up Fannie Mae and Freddie Mac could cost the government as much as $25 billion. And despite repeated White House veto threats, lawmakers plan to include a $4 billion program that would allow local governments to buy and rehabilitate foreclosed properties.

It remained unclear whether the White House would follow through on veto threats, particularly because administration officials have actively lobbied in support of major provisions.

"It's a lengthy bill and we're reviewing the language," White House spokesman Tony Fratto said. "It's clear that the Democrats chose to play politics with the legislation, and unfortunate that they're doing it with legislation that will prevent systemic risk to our financial system."

Read Full Article on The Wall Street Journal