It passes overwhelmingly in the House and Senate. President Bush did not hesitate to sign it into law. It is now law. Public Law No: 110-289 [GPO: Text, PDF.
We hear bits and pieces of what this law is. It is being promoted as a rescue to homeowners of this country facing foreclosure. But is it really?
Some say it provides funds for FHA to make new loans. But FHA does not and never has made loans. It only insures loans made and it charges the borrowers Mortgage Insurance Premium (MIP). It is the insurance that pays for defaulted loans. In addition, if you are given a loan to save a foreclosure, the law now makes FHA your partner. When you sell your home any profits must be split with the government.
Some say it will provide funds for cities and counties to purchase foreclosed homes and then rent them out to government assisted tenants. You must ask yourself, why do governments, city, county, state or federal need to own residential properties? Then ask, why would they allow someone to be foreclosed, evicted and possibly become homeless so that their home can be rented to some one on federal assistance?
Some say there will be tax advantages for first time homebuyers buying a foreclosed property. First ask yourself why the government can’t give the needy homeowner being foreclosed on some tax advantage and perhaps allow them to stay in their home. Second, the tax break is really a loan to be paid back in fifteen years or sooner if you sell the house.
Some say this law will help about 400,000 people in foreclosure. With over 2 million currently in foreclosure and the numbers rising daily it seems like this is a costly law for just a handful of citizens.
So what does this new law really provide for? It is called H.R 3221 which began its life as an Energy bill. So how do we get from energy to housing rescue? By the way, it still contains energy legislation along with consumer credit legislation.
Do we really know what is contained in this new law. I don’t think so. We know only the sound bites and snippets put out by our government and the media who get their information from the government.
I decided to do some research to see if I could find a copy of this legislation. I understand that in all it is over 600 pages long.
Here is what I found:
There are 8 versions of Bill Number H.R.3221 for the 110th Congress
1 . Renewable Energy and Energy Conservation Tax Act of 2007 (Placed on Calendar in Senate)[H.R.3221.PCS]
2 . Foreclosure Prevention Act of 2008 (Engrossed Amendment as Agreed to by Senate)[H.R.3221.EAS]
3 . American Housing Rescue and Foreclosure Prevention Act of 2008 (Engrossed Amendment as Agreed to by House)[H.R.3221.EAH]
4 . Housing and Economic Recovery Act of 2008 (Engrossed Amendment as Agreed to by Senate)[H.R.3221.EAS2]
5 . Housing and Economic Recovery Act of 2008 (Enrolled as Agreed to or Passed by Both House and Senate)[H.R.3221.ENR]
6 . Housing and Economic Recovery Act of 2008 (Engrossed Amendment as Agreed to by House)[H.R.3221.EAH2]
7 . New Direction for Energy Independence, National Security, and Consumer Protection Act (Introduced in House)[H.R.3221.IH]
8 . Renewable Energy and Energy Conservation Tax Act of 2007 (Engrossed as Agreed to or Passed by House)[H.R.3221.EH]
H.R.3221 Title: A bill to provide needed housing reform and for other purposes.
Sponsor: Rep Pelosi, Nancy [CA-8] (introduced 7/30/2007) Cosponsors (18) Related Bills: H.RES.615, H.RES.1175, H.RES.1363, H.R.6, H.R.364, H.R.2304, H.R.2313, H.R.2337, H.R.2389, H.R.2420, H.R.2635, H.R.2701, H.R.2773, H.R.2774, H.R.2776, H.R.2847, H.R.3220, S.2636 Latest Major Action: Became Public Law No: 110-289 [GPO: Text, PDF]
Note: Previously H.R. 3221 was the New Direction for Energy Independence, National Security, and Consumer Protection Act. Omnibus energy legislation was enacted in H.R.6, which became Public Law 110-140 on 12/19/2007.
OK, there it is. Click the links, read the copy, cross reference the other related bills, check out Public Law 110-140 and GOOD LUCK.
It would take months to determine what this is all about and how everything relates. In reality, we DON’T KNOW what is in this new law. All we know is that we have a new law. Be careful, you might break it and be subject to arrest and prosecution because you don’t know what the law is.
I leave you with this final thought, …THINK ABOUT THIS.
P.S. If anyone does take the time to go through it all and can explain it, please let us all know.