Crucial NAACP-supported House Foreclosure Relief Bill passes the House; Senate to act by Saturday July 26th
ISSUE UPDATE
DATE: July 25, 2008
TO: Concerned Parties
FROM: Hilary O. Shelton, Director, Washington Bureau
OMNIBUS BILL WOULD PROVIDE $300 BILLION TO HELP AVOID FORECLOSURES, ESTABLISH A TRUST FUND TO PROVIDE LOW-INCOME HOUSING, PROVIDE $4 BILLION TO STATES & LOCALITIES TO DEAL WITH FORECLOSED PROPERTIES
THE ISSUE: On Wednesday, July 23, 2008 the U.S. House of Representatives passed, by a margin of 272 yeas to 152 nays, an omnibus housing bill that is intended to address a myriad of housing needs throughout the Nation for years to come. Specifically the bill, H.R. 3221, the "Housing and Economic Recovery Act of 2008" takes a number of crucial steps in the right direction to address a housing and financial crisis that is of profound concern to the NAACP communities nationwide.
Key aspects of H.R. 3221 include:
- Nearly $4 billion in Community Development Block Grants for communities to purchase and rehabilitate foreclosed properties in hard-hit areas, and return affordable housing to those who need it most, while reducing urban blight, safety hazards, and drains on limited local resources in the process;
- The creation of an Affordable Housing Trust Fund to provide affordable rental housing for people who need it the most;
- A new nationwide licensing and registration system for loan originators that will greatly improve the oversight of a brokerage system that, in many cases, has been a major contributor to the scourge of predatory lending tactics; and
- Expanded authority for the Federal Housing Administration to help borrowers refinance into more affordable loans.
So now we must congratulate our elected representatives on the legislation about to become law, but also urge them to go further and to pass legislation to level the playing field between borrowers and lenders...
Thank you all for your attention to this urgent matter!!!