Refinance Bill Passed

Refinance Bill Passed


Under pressure to resolve the collapse of the real estate market, the United States Senate yesterday refinance bill passed a package of assistance to the two parties, builders and homeowners sad, but it faces opposition from the House of Representatives, considered to be too generous business.
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The 84-12 Senate vote on the work of the Commission when the Congress, the broader democratic measures to provide hundreds of billions of dollars to help homeowners to refinance mortgage loans more affordable. Senate action, when prices fell, economists said, more than two years 10,000 families are facing foreclosure.

After the adoption of new legislation refinance bill passed, the Senate bill, bank Chairman Christopher Dodd and D - connectivity, and said: "We are also unable to do so."

Dodd said: "This bill as ransom control, and quite frankly, we have here is not delivered to the title."

Senator Richard C. Shelby of Alabama, the senior Republican on the banking committee, urged the measure is a good step, expressed concern at the same time, the United States Congress might move far beyond, to a taxpayer-funded 1659.03 points, "freedom", with risk loans.

The refinance bill passed by the Senate, including 40 billion dollars in grants to help buy and restore around outside their homes, and a $ 7,000 income tax credit to buy foreign property. Bill added consumer counselling, providing more than 10 billion US dollars of mortgage revenue bonds to help refinance mortgages and expansion of the federal housing management.

A controversial provision is estimated to cost 25 billion, by 2010, will allow home builders and other companies currently are running at a loss, to a retroactive request for a refund of the tax in previous years.

Harvard University economist Lawrence Summers said that the sales tax break, will be difficult to stimulate activity, and may harm the market.