Senate passes the Housing and Economic Recovery Act

The Senate passed the Housing and Economic Recovery Act by a vote of 72-13.  This landmark legislation is designed to help thousands of Americans who are struggling with the looming threat of foreclosure to keep their homes. It also will help the homeowners and communities who are struggling with the devasting effects of foreclosures recover more quickly.

The bill will now be sent to the President to be signed into law. The legislation created the new initiative HOPE for Homeowners in order to prevent foreclosures. “With one of every eight homes projected to enter foreclosure over the next five years, and the economy shedding jobs as the costs of energy, health care and food skyrocket, the American dream has become a nightmare for countless families across the country,” said Senator Chris Dodd (D-CT). “Today, Congress did more than send a bill to the President – we sent a message to American families that help is on the way."

Some of the key provisions of the act include: The HOPE for Homeowners Act Foreclosure Counseling for Families in Need

Assistance for Communities Devastated by Foreclosures

GSE (Government Sponsored Enterprises) Reform

Treasury Emergency Authority

Mortgage Revenue Bonds

Standard Property Tax Deduction

Modernization of the FHA

Creation of Affordable Housing Fund

Enhancing and Improving Mortgage Disclosures

Assisting Returning Veterans to Avoid Foreclosures

First-Time Homebuyer Credits

Increase in Existing Low-Income Tax Credit.