The House has just passed the most comprehensive response yet to the American mortgage crisis. The American Housing Rescue & Foreclosure Prevention Act, H.R. 3221, will help families facing foreclosure keep their homes, help other families avoid foreclosures in the future, and help the recovery of communities harmed by empty homes caught in the foreclosure process. To shore up the housing market and ensure the availability of affordable home loans, the bill would put a tough, independent new regulator in charge of the housing Government Sponsored Enterprises, or GSEs (Fannie Mae, Freddie Mac, and the Federal Home Loan Banks), which are vital to both the financial markets and American homeowners. The new regulator will be far better prepared to quickly and effectively respond to issues affecting the safe and sound operation of these enterprises. The centerpiece of the bill will help significant numbers of hard-working American families in danger of losing their home refinance into lower-cost government -insured mortgages they can afford to repay -- at no cost to the American taxpayer. President Bush rescinded his veto threat on the legislation this morning. Rep. Barney Frank spoke in favor.
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