The Bill That Will Solve the Foreclosure Crisis

A few weeks from now, we may see a decline in theAct" (TILA), where lenders are required to disclose
number of foreclosed homes in our neighborhoods,information like changes in payments based on rate
along with that, a decrease of people living in shelters,adjustments to borrowers. This is to shield
cars, and streets.homebuyers from fraudulent brokers and
The Senate just recently cleared the ForeclosurelendersoProtection for servicemen against home
Prevention Act of 2008. This is the much-awaitedforeclosureoMore than $10 billion to fund loans for
answer to the country's worsening housing crisis. It will,first-time homebuyers and construction of inexpensive
for two things, modernize the Federal Housingrental housingoAn additional $150 million for foreclosure
Administration and create a new regulator for Fannieprevention counselingoCreation of a temporary FHA
Mae and Freddie Mac. The act will also redevelopprogram that will allow homeowners to refinance their
abandoned and foreclosed homes in neighborhoods hitmortgages when they become at risk of
by foreclosures through funds given to state and localforeclosureoIncrease in FHA loan limits to 110% of the
governments that will amount to up to $4 billion.local median home price
The bill also includes other housing assistanceHomeowners will no longer have to be afraid of
measures like:oLessened down payment requirementforeclosure. As soon as this bill is approved and signed
at 3.5 %oUp to $8,000 refundable tax credit forby the president, we won't have to worry too much
first-time homebuyersoA fortified "Truth in Lendingabout losing our homes.