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FHA Housing Stabilization and Homeownership Retention Act of 2008
To create a voluntary FHA program that provides mortgage refinancing assistance to allow families to stay in their homes, protect neighborhoods, and help stabilize the housing market.
Permits the Federal Housing Administration (FHA) to guarantee up to $300 billion in refinanced, viable mortgages for primary residences considered at risk foreclosure. Lenders would have to accept a write-down of principal in exchange for a short payment from the proceeds of the new loan. The borrower would have to agree to share any future home appreciation with the government. Only loans made before Dec. 31, 2007 would be eligible and signs of financial hardship would have to have been apparent before March 1, 2008. This bill is expected to be packaged together with some tax provisions, a GSE reform proposal and a bill to modernize the FHA. Barney Frank, the bill's sponsor, is hoping to finalize work on the package by the end of June.
4/17/2008--Introduced.
FHA Housing Stabilization and Homeownership Retention Act of 2008 - Amends the National Housing Act to create the Refinance Program Oversight Board, charged with establishing program and oversight requirements for the programs established under this Act. Instruct... moreSee Full Bill Text
Committees
Amendments
This bill has no amendments.
Bill Status
| Introduced |  | Voted on by House | | Voted on by Senate | | Considered By President | | Bill Becomes Law |
| April 17, 2008 |
Users tracking H.R.5830 (21) are also tracking:
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In the News
May 21, 2008 Housing help
Still, critics of the proposal (HR 5830:hr05830: in the House and known in the Senate as the Federal Housing Finance Regulatory Reform Act of 2008) complain ...
May 12, 2008 Congressman Ron Klein weekly report
The housing legislation includes the FHA Rescue and Neighborhood Stabilization Acts, (HR 5830 and 5818) which provide mortgage refinancing assistance to ...
May 08, 2008 House Approves Controversial Housing Package
Characterizing his proposal â HR 5830, the FHA Housing and Homeowner Retention Act â as a âcooperative approachâ to solving the housing mess, ...
Blog Coverage
July 02, 2008 Employment free home work
But It May Not Turn Out to be a Veto Promise After sending mixed signals for weeks about HR 5830, the Frank FHA mortgage refinaince loan guarantee program, President Bush issued a Statement of Administration Policy (SAP) opposing a . ...
Source: Home Employment Blog
July 02, 2008 SPECULATION ABOUT THE EFFECTS OF THE NEW FL FORECLOSURE LAW
Foreclosure as well as HR 5830 - The Problem as well as The Opportunity The foreclosures opposite the nation have been causing problems inside of neighborhoods. Most areas in the US have been experiencing the climb in crime rates due to ...
Source: Foreclosure Listings
July 02, 2008 Foreclosure and HR 5830 - The Problem and The Opportunity
The foreclosures across our country are causing problems within neighborhoods. Many areas in the US are experiencing a rise in crime rates due to so many vacant homes. Although the government has taken both fiscal and monetary action to ...
Source: Home-Buddies
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Self-employed persons need provisions in this bill to ensure they may qualify for FHA loans. The problem with self-employment is that even if a home based business has a mortgage as an expense of the business, and regardless of substantial gross income, only net income is used to qualify for FHA loans. Further, those persons who do not receive W-2's to verify income appear to be excluded from FHA loans in the qualification requirementsm i.e, stated income borrowers. This procedural exclusion stifles the small business owner, and can exclude him/her from home ownership through this home-saving FHA bill.
This proposal is brushing over two key items that seem to make it be a complete failure. One is assuming the current lender will comply to taking a short payoff the other is assuming applicant's debt to income will be that low. Not only are homes in the downward trend of values, credit cards balances are at their all time high. This bill appears it will only benefit the government not the average consumer.
This egregious legislation is going to be a fine addition to the book I am writing. The individuals who supported this bill are going to be 'famous', or rather, infamous. To attempt to assign taxpayers to fund 'new' mortgages for liars is a slap in the face to all citizens (except the liars). It's not about the speculators and second-homeowners, it's about liar buyers, liar lenders, liar builder/lenders. There is no justice for the taxpayer in being forced to pay any more 'bailout' scams without FIRST including fraud investigations upon all borrowers and lenders. Some buyers say 'the lender did the W-2's'. Well, the buyers signed it off. All the money they are proposing here, all that money, and not one of these representatives has the spine to call for fraud investigation first? We're not talking about a big process there. Before they start 'insuring' hundreds of billions I want proof of who lied in each case. When did these people get so lavish with my taxes?
I can't believe I will have to say something nice in my book about George Bush now. My 'review' of him would have been perfectly vile without this. I cannot believe he is one of the only people standing up against this gross, theiving exercise in arrogant ignorance.
Thanks,
CM
This is not an issue of liars. We did not buy our homes hoping that the market would depreciate by half within 2 years as my home did. I didn't lie on my application. I didn't deceive anyone. And no one deceived me. I took a loan to purchase a property. Period the end. How arrogant the anonymous writer is with his/her claims. He/She has no idea what he/she is talking about. I work in the industry and see it every day. Every walk of life. Not investors, but real human beings are losing their dreams and their lives to this horror... Losing their income because the economy is continually weakening. Losing their jobs to foreign soil as thousands did last year... and to 3rd world countries who have access to ALL of our private information with no international laws governing identity theft, or recourse against individuals when it happens... This collapse did not occur because of liars... Check your facts before you spout off. When you have been there, had a single conversation with anyone who has lost their job or home due to dominoe effect of this crisis... (I know 4 people who are either losing or have lost their homes already due to the economic quake) or done your research, then maybe that book will be worth the paper it's going to be printed on... or not...
However I think it is naive of the government to believe the funds allocated could make a dent in the mortgage industries struggles at this point... What happens when the strongest banks in the world collapse due to record losses... CITI has experiences record losses in the billions, and their stock has been reduced to an embarrassment at this point... Bank of America is just realizing the vastness of the bailout they have intiated with Countrywide... Wells Fargo is struggling to figure out what loss mitigation even is... Prime lenders who never thought they needed loss mitigation are scrambling to figure out how to do it because they never believed in the necessity before, never experienced this kind of loss before. Are you aware that for every dollar lent on a home, between .50 and .60 cents are lost on that dollar?! All banks are taking increased losses in the billions quarter over quarter... Everyday I see it. The trickle down effect is emense.
If the government doesn't want to see further colapse, perhaps their proposal would be to back the banks and FORCE the mitigation efforts in reasonable measures rather than asking the banks to take all of the losses and expect to reap the benefit of those losses later? What is the government insuring? The loss is taken by the financial institution which has to agree to the loss... and then somehow magically the government is owed the deficiency balance for the first 5 years until forgiven? How does that keep the banks afloat? Like them or love them, banks are integral to financial security of this nation. Something is rotten in this bill. Why is the government entitled to the deficiency losses of the banks that are owed the money? Who else gets these imaginary dollars? What is missing?
Oh, and in addition, the banking industry has been modifying loans for decades to avoid taking losses and taking homes back. The bank doesn't want your house... They want to be repaid and recover the money they loan. When they can not? They MITIGATE THAT LOSS to decrease it and save the home for the customer as well as for the bottom line. Yes, lending practices were lax, but everyone pays with their health, sanity, dreams, dollars, jobs... everyone pays till a real solutions is met...
Keep in mind; our politicians now has American taxpayers over $56 TRILLION DOLLARS in debt. If you would like to view the fast moving clock, go to: http://www.truthin2008.org
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