The US Housing Rescue Plan: What It Includes

The US Housing Rescue Plan: What It Includes
One part of the new law could make it easier for some homeowners to refinance to lower-cost loans. Another offers direct government support to the nation's two biggest housing finance companies. Transcript of radio broadcast:
31 July 2008
This is the VOA Special English Economics Report
Last week, the United States Congress approved a major housing bill. President George Bush signed it into law on Wednesday.

The plan could help an estimated four hundred thousand homeowners late in their payments and in danger of losing their homes.

The government will guarantee up to three hundred billion dollars in lower-cost refinancing of loans. In return, lenders must agree to forgive part of the original loan.

But experts say as many as three million owners are in trouble. With falling prices, many people owe more than their homes are worth.

The new law also includes help for the mortgage finance companies Fannie Mae and Freddie Mac. They guarantee or own almost half of the nation's twelve trillion dollars in housing debt.

They buy high quality loans but have also invested in risky mortgages. In recent months they have reported eleven billion dollars in losses, and their stock prices have collapsed.

Congress created the Federal National Mortgage Association, or Fannie Mae, in nineteen thirty-eight. In sixty-eight it became a shareholder-owned company financed with private capital. Then Congress created a competitor: the Federal Home Loan Mortgage Association, or Freddie Mac.

Fannie Mae and the smaller Freddie Mac buy loans from banks and other lenders, then sell them as securities to investors worldwide. This secondary market provides money for lenders to make new loans.

Now, few investors are interested in mortgage-backed securities without government guarantees.

Investors always believed that if Fannie and Freddie needed help, the government would intervene. Now, it has. The new law lets the Treasury, until the end of next year, offer them unlimited credit and even buy their stock.

Some critics say Fannie and Freddie should be replaced by truly private companies. Their government connection has lowered their borrowing costs. But many economists say homeowners get little of that savings. And critics have deplored their spending on political campaigns, lobbying activities, and pay for their executives.

The plan does create new supervision over both companies.

The Congressional Budget Office says the rescue plan could cost taxpayers twenty-five billion dollars. But it also says there is probably better than a fifty percent chance that no money will be needed.

And that's the VOA Special English Economics Report, written by Mario Ritter. I'm Steve Ember.


----------------------------Google Translate

美国房屋拯救计划：它包括什么
一部份的新法律可能更容易一些业主再融资成本较低的贷款。另一项由政府直接提供支持，向全国最大的两个房屋的财务公司。全文电台广播：
2008年7月31日
这是美国之音特别英语经济学报告
上周，美国国会批准了一项重大的房屋条例草案。布什总统签署成为法律，对周三。

该计划可以帮助估计400000屋主晚在其付款和在危险失去他们的家园。

政府将保证高达3000.0亿美元，在成本较低的再融资贷款。作为回报，贷款人必须同意原谅的一部分，原来的贷款。

但专家说，有多达三百万业主麻烦了。与价格下降，很多人欠多，他们的房子都有价值。

新法律还包括帮助为按揭的财务公司Fannie Mae的和Freddie Mac 。他们保证或自己的几乎一半的国家的120000.0亿美元，在房屋的债务。

他们购买高品质的贷款，而且也投资在高风险抵押贷款。在最近几个月他们报告110.00亿美元的损失，其股票价格已经崩溃。

国会设立联邦国民抵押贷款协会，或Fannie Mae的，在1938年。在68成了一个股东拥有的公司提供资金与私人资本。那以后，国会建立了一个竞争对手：联邦居所贷款抵押协会，或Freddie Mac的。

Fannie Mae的和较小的Freddie Mac的购买贷款由银行和其他放贷者，然后卖给他们，作为证券投资者全世界。这二手市场提供资金放款作出新的贷款。

现在，不少投资者有兴趣在住房抵押贷款证券没有政府的担保。

投资者总是认为，如果房利美和Freddie需要帮助时，政府会进行干预。现在，它。新的法律，让库务，直到明年年底，为他们提供无限的信用，甚至购买其股票。

一些批评者认为，房利美和Freddie应改为真正的私人公司。他们的政府方面降低了他们的借贷成本。但许多经济学家说，自置居所获得少许节余。和批评表示遗憾，他们的消费对政治运动，游说活动，并支付其高管。

该计划是否创造新的监督，这两家公司。

国会预算办公室说，拯救计划，可以花费纳税人250.0亿美元。但它也说有可能是胜过50 ％的机会没有钱，将需要。

这是该美国之音特别英语经济学的报告，书面，由马里奥里特尔。我史蒂夫ember 。