Consumer Education, Critical Capital, and the Federal Home Loan Banks
One of the provisions of the Housing and Economic Recovery Act of 2008 is to provide funding for programs approved by the Department of Housing and Urban Development (HUD) to increase the financial knowledge and decision making capabilities of prospective homebuyers.
The programs will be designed to help people learn to establish monthly budgets, build personal savings for major purchases, reduce debt, implement financial stability and teach people to set and reach financial goals.
Additionally these programs will be designed to help people understand their credit scores and the relationship between credit history and credit scores. Building savings for long term and/or short term goals is also an objective.
Grants will be distributed for approved programs. Documented behavioral changes in savings and spending patterns must be evident. Additionally, five pilot programs will be authorized and tracked for effectiveness.
The legislation also provides for some people working within HUD to transfer to the Federal Housing Finance Agency without loss of pay, status or tenure. All benefits are to be equivalent between the two agencies.
The Director will establish the amount of critical capital necessary for the Home Loan Banks. Capital requirements will be established by the Director for adequately capitalized banks, undercapitalized banks, significantly undercapitalized banks and critically undercapitalized banks. The capital reserves of the banks will be monitored and remedies established for those banks failing to meet the requirements. Supervisory actions are spelled out including conservatorship and ultimately receivership for critically undercapitalized banks.
Provisions for claims, disposition of assets, notification of potential claimants, and the legal procedures to be followed are delineated in the legislation.
Title II concerns the Federal Home Loan Banks whose job is to provide liquidity to member banks, encourage affordable housing and community development, and provide a capital structure. Semi annual reporting to Congress by the Director regarding these objectives is mandated.
The legislation abolishes the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development and tranfers many of these objectives to the Federal Housing Fianance Agency. As with other areas of HUD where employees will be transferred, status, pay, and benefits will not be impacted.
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h3221eas2.pdf
Next- HOPE for Homeowners, S.A.F.E. Mortgage Licensing Act, and Foreclosure Prevention
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Fannie Mae and Freddie Mac In the News
http://www.investors.com/editorial/IBDArticles.asp?artsec=5&issue=20080806
http://www.investors.com/breakingnews.asp?journalid=78208990&brk=1
Tags: Consumer Education, Fannie Mae, Foreclosure, Freddie Mac, Housing Bill
December 12th, 2009 at 8:16 am
I am truly impressed with the general subject matter of your blog. It is easy to see that you are fervent about your writing. If only I had your publishing ability I hope to find similar articles in the near future. Good luck.
January 4th, 2010 at 6:06 pm
Thank you Gertrude, I do love real estate and I do love writing…I am back to blogging again…I take a hiatus now and then. thank you for your nice comments.
June 22nd, 2012 at 11:57 pm
This would have to be a new blog. Something that you want to read about, but havent found online. This can be religious, fashion-based, etc. Im just getting some ideas for the blog i want to start- Thanks!.