World Economy

Jul 30, 2008

Bush has enacted the rescue plan property market

WASHINGTON - George Bush signed the comprehensive plan for rescuing the U.S. residential housing market approved by Congress, while seizures are rising and prices in the sector continue to fall.

The rescue plan establishes a fund of 300 billion dollars to help the property buyers in difficulty.

The text, approved last Wednesday by the House of Representatives and Saturday by the Senate, offers tax breaks to encourage property purchases. It establishes a national system of licensing for mortgage companies and allocated four billion dollars to local authorities for the purchase and repair of houses have been seized in communities affected by seizures and the fall property prices.

Despite its opposition to the allocation of four billion dollars to the local authorities, the president of USA finally supported this legislation because it has many other key reforms in the sector.

"We look forward to establishing new regulatory bodies to improve confidence and stability in the markets and provide better oversight of Fannie Mae and Freddie Mac", the two American giants of mortgage refinancing, "said Tony Fratto, bears voice of the White House.

"The Federal Housing Administration (the federal government on issues of real estate) will begin implementing new measures to ensure that more deserving American families can retain their homes," he added, referring to the worst crisis property bisected by the USA since the Great Depression years of 1930.

by erectusplus at 8:38 AM |