A look at housing legislation
‘Comparison of Senate and House versions of housing rescue bill:
—Both would modify a Federal Housing Administration foreclosure rescue program enacted in 2008 to broaden participation and provide new incentives for lenders to adjust mortgages for struggling homeowners.
—Both would provide a safe harbor to protect mortgage-holders from investor lawsuits if they modify the terms of a home loan.
—Both would take $2 billion of the $200 billion Wall Street bailout fund to pay for the FHA program changes.
—Both increase from $100,000 to $250,000 the amount in bank deposits the Federal Deposit Insurance Corporation will insure. The Senate version would sunset this provision in 2013.
— The House bill would enable a bankruptcy judge to lower an individual’s mortgage payment. The Senate rejected this measure.
— The Senate bill includes up to $130 million to try to prevent foreclosures. Money would go toward such programs as credit counseling and advertising to warn people against foreclosure scams.
— The Senate bill would expand loan-modification opportunities for rural houses, as well as ensure that tenants renting in a foreclosed building are given 90 days notice before being forced to move.