Bush Signs Wide-Ranging Housing Bill Into Law

Wall Street Journal (07/31/08) P. A16; Paletta, Damian
On July 30, President Bush signed into law a comprehensive housing bill that aims to curtail foreclosures and ease the credit crisis. The law establishes a new independent regulator for the government-sponsored enterprises (GSEs)--the Federal Housing Finance Agency--that will be headed by Office of Federal Housing Enterprise Oversight director James Lockhart and given authority over Fannie Mae and Freddie Mac's portfolios and capital levels. Additionally, the law boosts the conforming-loan limit as high as $625,000 in the priciest housing markets and will permit the FHA to refinance up to $300 billion in mortgages beginning on Oct. 1. Finally, the law institutes a rescue plan for Fannie Mae and Freddie Mac that enables the Treasury Department to offer the GSEs a temporary credit line as well as purchase GSE stock to ward off financial crisis.