Congress Passes the Housing and Economic Recovery Act

Motivated by the recent Fannie Mae and Freddie Mac crisis, Congress passed the Housing and Economic Recovery Act (HR 3221) on Saturday.  The act is regarded as the most significant housing legislation in decades and is designed to address the nation's housing meltdown.  It strengthens and modernizes the regulation of Fannie Mae and Freddie Mac and the Federal Home Loan Banks and expands the housing mission of these GSEs. The legislation also creates a new program at FHA that will help at least 400,000 families save their homes from foreclosure.

For a summary of HR 3221 click here.