A look at the housing rescue plans in Congress

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.


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