Long Island Board of Realtors(R) Applauds President Bush's Decision to Sign Housing Bill Into Law

LONG ISLAND, NY--(Marketwire - July 30, 2008) - This morning President Bush signed into law a comprehensive housing bill that aims to improve the struggling housing market.

The Senate voted 72-13 in favor of the bill last weekend, just a few days after the House of Representatives also passed it.

The legislation has two main objectives: to offer affordable government-backed mortgages to homeowners at risk of foreclosure and to strengthen Fannie Mae and Freddie Mac with a temporary rescue plan and a new, more strict regulator.

This legislation contains a number of victories for American homeowners including Government Sponsored Enterprises (GSE) reform, Federal Housing Administration (FHA) reform, permanent loan limit increases, and a $7,500 first-time homebuyer tax credit.

According to Long Island Board of Realtors® (LIBOR) President, Mohsen Zandieh, "This bill will help homeowners facing foreclosure find ways to refinance, and will help strengthen mortgage markets."

The provisions that will most directly affect consumers are:

The FHA will be allowed to insure up to $300 billion in new 30 year fixed-rate mortgages for at risk borrowers in owner-occupied homes if their lenders agree to write down loan balances to 90% of the homes' current appraised value.

A permanent increase in conforming loan limits. The law will permanently increase the cap on the size of mortgages guaranteed by Fannie Mae and Freddie Mac to a maximum of $625,500 in high cost areas like ours thus making it easier for borrowers to get mortgages, because those mortgages are more likely to be traded if they are considered conforming.

The new law includes a tax refund for first-time home buyers worth up to 10% of a home's purchase price but no more than $7,500 that would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The refund serves more as an interest-free loan since it would have to be paid back over 15 years in equal installments.

Zandieh added, "This new law will help ensure that every American who can afford a home and wants to do so will have the opportunity and that everyone who responsibly owns a home is able to keep it."

ABOUT LIBOR

LIBOR is a not-for-profit trade association consisting of more than 25,000 real estate professionals. It is the largest local Realtor Board in the country with ten Chapters in Nassau, Suffolk and Queens Counties.

Contact Information: Contact: Alyssa Nightingale 631-367-8599 anight@att.net