What is the Housing and Economic Recovery Act?

The Housing and Economic Recovery Act is a lawsuits in law, which aims to help owners of houses with the risk of losing their homes and help people who could not afford to own homes. It was also designed to instill more supervision of the mortgage funding system. A number of measures have been introduced to help the government achieve these goals.

This set of legislation was signed in law by President George W. Bush 30 July 2008. This was at a time when there was a significant dissatisfaction among house owners. Due to the financial crisis, the Americans' market was closed. The aim of the Housing and Economic Recovery Act was to prevent the market from closing a larger scale. This program was completely voluntary, neither homeowners nor creditors CBI forced to participate. Those who participated had to meet certain requirements. The program was limited to the main residences occupied by the owner. Restrictions on income applied to those homeowners who used the program.

According to the law regulations, the owner of the house was required to have a mortgage that was at least 32% of its total income to be eligible. People with the conviction of fraud were considered unfit. In addition, accepting assistance required the person to confirm that he did not intentionally extend his mortgage and not to receive his loan using fraudulent means.

Mortgage owners were obliged to lose at least 10 percent before the government helps. These creditors had to voluntarily reduce the dies to at least 90% of the value of the property. However, it was not a fixed discounted amount. In some cases, the creditor could take significantly greater losses.

In addition to the mortgage discounting, creditors were obliged to give up fees and sanctions. They were also obliged to help with the origin and closure of new loans. This program was designed as an investment strategy. Instead of providing the government financial spaceDky, Housing and Economic Recovery Act a legitimate government for future profits from homes that helped save.

Although this temporary program has been designed to expand from 1 October 2008 to 30 September 2011, there are several elements that are permanent. The signature of this Act was created by the Federal Housing Financing Agency (FHFA). The purpose of this agency is to act as "a regulator with all authorities necessary to supervise the vital components of the secondary mortgage markets of our country". FHFA was employed by the merger of federal entities.

These entities include the federal supervision of housing accommodation, which was focused on the activities of Fannie Mae and Freddie Mac. The Federal Housing Financing Council was responsible for the regulation of a group of financial institutions known as FHL Banks. The GSE Mission Office at the Ministry of Housing and City Development has been included as an advantage for community development and to improve the house ownership and reduce discriminAce.

There has been another permanent change that included Fannie Mae and Fannie Mac. The Housing and Economic Recovery Act included the creation of permanent affordable housing confidence, which was to be financed by these two entities. This trust has been designed to generate and maintain housing with low and very low income.