Guide Note

On July 30, 2008, President George W. Bush approved a bill to provide mortgage relief to an estimated 400,000 American homeowners facing foreclosure. The bill allows the U.S. Treasury to offer financial assistance to troubled mortgage providers Fannie Mae and Freddie Mac by loaning them money or buying stocks in the companies.¹

Fast Facts

1. Allowance for financial aid to Fannie Mae and Freddie Mac expires on December 31, 2008
2. National Debt limit increased to $10.6 trillion
3. Provides $180 million for financial counseling for those facing foreclosure
4. Allows $300 billion to the Federal Housing Authority to insure mortgages
5. Is expected to help stabilize U.S. financial markets²

President Bush had previously stated that he may veto the bill, as he did not agree with a section that allowed $3.9 billion to local governments for the purchase and repair of foreclosed properties. However, Bush allowed the legislation to go through including the provision, which Democrats believe will help stabilize communities and housing markets.¹