Emergency Economic Stabilization Act of 2008 Signed

Emergency Economic Stabilization Act of 2008 Signed

On Friday, October 3, the U.S. House of Representatives voted 263 to 171 to enact the Emergency Economic Stabilization Act of 2008 into law. After being rejected earlier in the week, the legislation received a number of enhancements in the areas of consumer and taxpayer protection which made the bill more palatable for congressional leaders who were initially opposed to the bill.

"The vote on the bill reflects how many of you feel—torn. "We realize this bill is not perfect," said NAR President, Richard Gaylord. "However...the additions made by the Senate, including raising the FDIC insurance limit and several other measures that will benefit and protect taxpayers, make it a more favorable solution than the previous proposal. More importantly, failure to act would have pushed consumers into more dire circumstances."

Included in the revised bill language is an increase in the amount of deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC), legislation that will shield many taxpayers from the ravages of the Alternative Minimum Tax (AMT), and strengthened directives to lenders to work with borrowers to prevent foreclosures and to provide timely responses to short sales. You can review the bill in more detail at the House Financial Services Committee website.

NAR will continue to make sure the measures included in this bill are implemented quickly and will provide updates and information at www.realtor.org/creditcrisis.

Source: National Association of REALTORS®