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Signed Bill Supports GSEs, Affordable Housing

WASHINGTON, DC-The newly signed bill is providing a bailout for 400,000 homeowners as well as buttressing Fannie Mae and Freddie Mac.

By Erika Morphy | Updated on July 30, 2008

WASHINGTON, DC-Fannie Mae and Freddie Mac support and a boost to affordable housing financing are among the provisions in the mammoth-sized housing bill that Pres. George Bush just signed the housing legislation, after Congress pushed it through in a rare weekend session. The heart of the bill is largely aimed at homeowner and owner-occupied properties with the establishment of a $300 billion fund that is expected to provide foreclosure relief to some 400,000 homeowners.

However the bill also establishes a financial safety net for Fannie Mae and Freddie Mac, agencies in which the market has lost much confidence over the last several weeks. Little surprise then that the commercial real estate industry is breathing a sigh of relief with its successful passage. The changes to the regulatory apparatus of Fannie and Freddie are substantive, Jean Everett, partner in Hiscock & Barclay’s Financial Institutions & Lending practice, tells GlobeSt.com and will provide an important psychological boost to the market.

“It will have the effect of sending a strong message to investors–especially foreign investors–that the federal government understands its supportive role for Fannie and Freddie.”

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