Comparison of major elements of housing relief bills in the Senate and House. They would:
• Give the Federal Housing Administration $300 billion in new lending authority and relax standards to provide affordable, fixed-rate mortgages to debt-ridden homeowners. Any losses would be covered by an affordable-housing fund drawn from the profits of Fannie Mae and Freddie Mac, the government-sponsored companies that finance mortgages. Under the House bill, taxpayers ultimately are responsible for losses.
• Modernize the FHA and allow it to back loans for riskier borrowers. Increase the size of loans the agency may insure — set to revert to $362,790 — to $625,000 in the highest-cost areas. The House-passed bill would set the limit at $729,750.
• Bar the FHA from insuring mortgages in which the borrower’s down payment is paid by the seller and prohibit the agency from charging premiums based on the riskiness of the homeowner. The House-passed bill allows loans with seller-funded down-payment assistance and includes risk-based pricing.
• Provide low-income housing tax breaks and a credit of up to $8,000 for first-time homebuyers who purchase residences between April 9, 2008, and April 1, 2009. The House version includes a first-time homebuyer tax credit of $7,500.
The Associated Press
