Covered mortgage commitments made on or before January 1, 2008. 1101) Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to replace the Office of Federal Housing Enterprise Oversight of the Department of Housing … It also provided emergency assistance for the redevelopment of abandoned and foreclosed homes. 2654, enacted July 30, 2008) (commonly referred to as HERA) was designed primarily to address the subprime mortgage crisis. Required existing mortgage holders to accept the proceeds of the insured loan as payment in full for all pre-existing indebtedness. Some provisions of the law were modified by the American Recovery and Reinvestment Act of 2009, which was signed into law by President Obama on February 17, 2009.[1]. Licensed Realtors and MLOs who work for federally regulated financial institutions, for example, are not required to be licensed as MLOs, although they are required to register. HERA addressed the subprime mortgage crisis, reformed the regulator of Fannie Mae and Freddie Mac, authorized the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed-rate mortgages for subprime borrowers, created the Neighborhood Stabilization Program, and authorized the creation of the Housing Trust and Capital Magnet Funds.
The Housing and Economic Recovery Act was ultimately intended to renew public faith in government-sponsored enterprises (GSEs) that provided home loans like Fannie Mae and Freddie Mac. The Act also established the Federal Housing Finance Agency (FHFA) out of the Federal Housing Finance Board (FHFB) and Office of Federal Housing Enterprise Oversight (OFHEO). Housing and Economic Recovery Act of 2008 (HERA) Programs (Public Law 110-289, approved July 30, 2008) HOPE for Homeowners. Mortgage loans include financing and refinancing transactions, reverse mortgages, home equity lines of credit and just about any other credit transaction secured by a first or junior lien on a dwelling.
), passed by Congress and signed by President G.W. One such step is to file a report to the Consumer Financial Protection Bureau or with the U.S. Department of Housing and Urban Development (HUD). It was intended to restore confidence in Fannie and Freddie, but included provisions that came after years of work by the affordable housing industry. This new agency used its newfound authority to put Fannie Mae and Freddie Mac under conservatorship in 2008. 3221 - The Housing Stimulus Bill", "Statement of FHFA Director James B. Lockhart", "Fact Sheet: Questions and Answers on Conservatorship", "Treasury to Rescue Fannie and Freddie: Regulators Seek to Keep Firms' Troubles From Setting Off Wave of Bank Failures", "Homeowners Rescue Program Shows Slim Benefits", "As Housing Act Passes Congress, Questions Emerge", "Bush signs housing bill as Fannie Mae grows", "Bush Signs Measure for Homeowners, Fannie, Freddie", http://www.govtrack.us/congress/bill.xpd?bill=h110-3221, Emergency Economic Stabilization Act of 2008, Dodd–Frank Wall Street Reform and Consumer Protection Act, Acquired or bankrupt banks in the late 2000s financial crisis, Federal takeover of Fannie Mae and Freddie Mac, Homeowners Affordability and Stability Plan, Public–Private Investment Program for Legacy Assets, 2009 Supervisory Capital Assessment Program, Term Asset-Backed Securities Loan Facility, https://en.wikipedia.org/w/index.php?title=Housing_and_Economic_Recovery_Act_of_2008&oldid=972596113, United States federal housing legislation, Articles to be expanded from September 2008, Articles with unsourced statements from May 2011, United States federal legislation articles without infoboxes, Creative Commons Attribution-ShareAlike License.