SenateE Passes Housing Relief Bill, Package Contains Coleman Provision to Keep Veterans in Their Homes
MN Senator’s amendment triples foreclosure protection to 9 months for our men and women in uniform returning from active duty service
April 10th, 2008 – Washington, D.C. – 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 and also 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 proudly 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 home foreclosure crisis is affecting people from all walks of life, and unfortunately, our servicemen and women are no exception,” said Coleman. “I know from talking with our troops and their families that, because of lengthy deployments, servicemembers often face unique challenges when trying to stay on top of their mortgages. I am pleased the Senate has adopted this important provision. Our troops should never be penalized because of their service.”
In addition to Coleman’s provision, the Housing package contains a $7,000 tax credit for homebuyers to purchase foreclosed homes and $10 billion in bond authority that will allow these tax-exempt bonds to be used to refinance subprime loans, mortgages for first-time homebuyers and multifamily rental housing.
“As a whole, this bipartisan bill will soften the impact of the crisis by taking steps to help weather the storm of foreclosures we have seen in Minnesota and across the country. I was pleased my colleagues from both sides of the aisle came together to pass this important bill.”
Contact(s):
Luke Friedrich, (651) 645-0323
