Housing and Economic Recovery Act of 2008
US act of congress to address the subprime mortgage crisis / From Wikipedia, the free encyclopedia
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The United States Housing and Economic Recovery Act of 2008 (commonly referred to as HERA) was designed primarily to address the subprime mortgage crisis. It authorized the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders wrote down principal loan balances to 90 percent of current appraisal value. It was intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding. States are authorized to refinance subprime loans using mortgage revenue bonds. Enactment of the Act led to the government conservatorship of Fannie Mae and Freddie Mac.
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Public law | Pub. L.Tooltip Public Law (United States) 110ā289 (text) (PDF) |
Statutes at Large | 122 Stat. 2654 |
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