WASHINGTON – With little fanfare in the privacy of the Oval Office away from television cameras, President Bush today signed the housing relief bill passed by Congress last week.
The bill sets up a fund, financed by Fannie Mae and Freddie Mae, to provide government loans to help some of the victims of the subprime mortgage crisis refinance their mortgages. The fund would provide $500 million for foreclosure rescues in the first year.
The measure also strengthens regulatory oversight of Fannie and Freddie, and gave the Treasury Department the right to buy shares of the two mortgage buyers in case they need additional capital.
Fannie and Freddie, which have lost more than $11 billion in the nine months ending March 31, own or guarantee $5.2 trillion worth of home mortgages, about half of all outstanding loans. They are private companies that are backed by the government.
The credit union trade associations support the measure, citing the importance of having a strong Fannie and Freddie to purchase mortgages from credit unions.
The Senate approved the measure on Saturday and the House approved it last Wednesday.
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