(Warwick, R.I.) - Congressman Jim Langevin today again voiced his support for housing legislation that is designed to keep families in their homes and stabilize the housing market. Today’s legislation builds upon a similar bill passed by the House in May and now includes compromise language negotiated with the Senate, in addition to provisions creating an independent agency to regulate Fannie Mae, Freddie Mac and the Federal Home Loan Bank System, and providing authority to the Treasury Department in the event federal financial intervention is required to stabilize the institutions.

“This legislation is an important, common-sense response to the housing crisis and will help strengthen Rhode Island families and our national economy,” said Langevin. “In addition to direct assistance to homeowners, a key component of the package is language that will restore confidence in Fannie Mae and Freddie Mac, our nation’s largest mortgage backers. I am also glad the President has finally lifted his misguided veto threat and will not stand in the way of assistance to local governments to purchase abandoned and foreclosed properties.” 

The American Housing Rescue and Foreclosure Prevention Act of 2008 (H.R. 3221) is expected to:

• Help struggling homeowners facing foreclosure by allowing them to refinance into affordable government-backed mortgages
• Boost homeowner resources with tax provisions that offer credits for first-time homebuyers
• Improve access to low-income housing
• Increases the amount individuals can deduct up to $500 for individuals and $1000 for joint filers
• Overhaul the Federal Housing Administration
• Create a National Affordable Housing Trust Fund
• Provide grants to local governments to purchase abandoned and foreclosed properties
• Establish an independent Federal Housing Finance Agency to regulate Fannie Mae, Freddie Mac and the Federal Home Loan Bank System
• Provide emergency authority to the Treasury to stabilize Fannie Mae and Freddie Mac, if necessary

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