Comprehensive housing legislation includes veterans foreclosure relief provision
Washington, D.C. – July 31, 2008 – (RealEstateRama) — Senator Norm Coleman today announced final Senate passage of the Foreclosure Prevention Act of 2008, bipartisan legislation that will help address the current housing crisis. The measure contains a provision Coleman authored to protect returning servicemembers from the threat of foreclosure. Current law provides our men and women in uniform with only a three month window after active duty service to work out mortgage difficulties they may have encountered while on duty defending our nation. This provision triples that window to nine months, preventing lenders from foreclosing on our brave men and women in uniform during that timeframe, while also providing them with one year of relief from increases in mortgage interest rates. In addition, the Coleman provision requires the Department of Defense to establish a counseling program to ensure veterans and active service members can access assistance if facing financial difficulties. Also included in the final bill is a provision that increases the VA loan guarantee amount so that veterans have additional homeownership opportunities. The bill now heads to the President’s desk.
“Given the tremendous sacrifice our troops make in defending our nation, it is only right that we ensure they are provided with the necessary time to keep their homes. The last thing that our servicemembers need to worry about upon their return is whether they and their families will be foreclosed upon, said Coleman. “I have been pushing this critical provision for a long time now and I am pleased it was included in the housing bill. I look forward to the President’s signature and the help that will be provided to our returning troops and their families.”
In addition to Coleman’s veteran’s provision, the Foreclosure Prevention Act of 2008 also includes a federal backstop for Fannie Mae and Freddie Mac, a temporary and voluntary Federal Housing Administration (FHA) mortgage rescue program, a temporary first-time homebuyer tax credit, $4 billion in Community Development Block Grant (CDBG) funding, and $180 million for pre-foreclosure counseling. Additionally the legislation provides much-needed reform to ensure that Fannie Mae and Freddie Mac operate on a safer and sounder basis, as well as FHA reform to enable more homeowners access to safe, fixed-rate mortgages.
According to the Mortgage Bankers Association, Minnesota currently ranks sixth in the nation in terms of subprime mortgages in foreclosure and 11th in the nation in terms of all mortgages in foreclosure.
Contact(s):
Leroy Coleman, (202) 224-5641
