Housing and Economic Recovery Act of 2008

The Housing and Economic Recovery Act of 2008 (USStatute|110|289|122|2654|2008|07|30) designed primarily to address the subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30 2008. It authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value. It's intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding. States will be authorized to refinance subprime loans using mortgage revenue bonds. It also establishes the Federal Housing Finance Agency (FHFA) out of the Federal Housing Finance Board (FHFB) and Office of Federal Housing Enterprise Oversight (OFHEO).

Through the powers granted to Federal Housing Finance Agency (FHFA), created by the act, on September 7, 2008, FHFA director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA. The action is "one of the most sweeping government interventions in private financial markets in decades". [ ] ] ]

Housing Assistance Tax Act of 2008

Includes a first-time home buyer refundable tax credit for purchases on or after April 9, 2008 and before July 1, 2009 equal to 10 percent of the purchase price of a principal residence, up to $7,500.

*Phases out the credit for taxpayers with incomes over $75,000 ($150,000 for joint returns).
*Requires taxpayers receiving the credit to repay it over 15 years in equal installments by imposing a surcharge on the taxpayers’ annual income tax.

The Act provides emergency assistance for the redevelopment of abandoned and foreclosed homes.

FHA Modernization Act of 2008

*Increases the FHA loan limit from 95 percent to 110 percent of area median home price up to 150 percent of the GSE conforming loan limit, or $625,000), effective January 1, 2009.
*Requires a down payment of at least 3.5 percent for any FHA loan.
*Places a 12-month moratorium on HUD implementation of risk-based premiums.
*Prohibits seller-financed down payments.
*Allows down payment assistance from family members.

Federal Housing Finance Regulatory Reform Act of 2008

HOPE for Homeowners Act of 2008

*Authorizes the FHA to insure up to $300 billion of 30 year fixed rate refinance loans up to 90% of appraised value for distressed borrowers.
*Covers mortgage commitments made on or after October 1, 2008 through September 30, 2011.
*Requires existing mortgage holders to accept the proceeds of the insured loan as payment in full for all pre-existing indebtedness.

Mortgage Disclosure Improvement Act

Secure and Fair Enforcement for Mortgage Licensing Act of 2008

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Act summary

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Enactment news

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