By Eugene T. Lowe
May 19, 2008

The U.S. House of Representatives passed a comprehensive housing bill on May 8 in a series of amendments to the Senate passed Foreclosure Prevention Act of 2008, H.R. 3221. The amendments to the bill as adopted by the House were packaged as the American Housing Rescue and Foreclosure Prevention Act. The bill passed by a vote of 266-154, with the following amendments:

• The FHA Housing and Stabilization and Homeownership Retention Act (H.R. 5830) provides mortgage refinancing assistance to keep families from losing their homes, protect neighboring home values, and help stabilize the housing market.

• FHA Modernization (H.R. 1852) had already passed the House in September as the Expanding American Homeownership Act of 2007. This legislation reforms FHA (called for by the Conference of Mayors) will expand mortgage loans for families.

• GSE Reform or the Federal Housing Finance Reform Act of 2007 (H.R. 1427) strengthens the regulation of government sponsored enterprises Fannie Mae and Freddie Mac. Legislation also authorizes a new Fund to increase the nation’s stock of affordable rental housing, which is strongly supported by the Conference of Mayors.

• The Emergency Mortgage Loan Modification Act of 2008 (H.R. 5579) would protect servicers from the threat of lawsuits from investors when the servicers modify troubled mortgages.

• The Housing Assistance Tax Act of 2008 (H.R. 5720) provides a temporary increase to the low-income housing tax credit, helps returning soldiers avoid foreclosure, gives first-time homebuyers a refundable tax credit, and makes available an $10 billion in mortgage revenue bonds.

• An amendment by Representatives Brad Miller (NC) and Steven LaTourette (OH) protects the rights of states and cities to regulate the foreclosure process and the treatment of foreclosed property.

Also on May 8, the House passed H.R. 5818, the Neighborhood Stabilization Act of 2008 by a vote of 239-188. The legislation would provide $15 billion in loans and grants for the purchase and rehabilitation of vacant and foreclosed homes. This will help stabilize communities by reselling the homes for occupancy as soon as possible.

Both the amendments to H.R. 3221 and the legislation H.R. 5818 will now move to the Senate.