On Wednesday, President Bush, signed on a housing bill that aims to prevent foreclosure for 15% of homeowners in eminent threat of losing their homes within the next year. Tony Fratto, White House spokesman, Tony Fratto, said that “We look forward to put in place new authorities to improve confidence and stability in markets,” as new policies are developed by the FHA.

Regarded as one of the most important housing bills developed in many decades, it gained early support from lawmakers. According to Nancy Pelosi, House Speaker (D-CA), “By expanding homeownership opportunities and protecting families against foreclosure, we are helping keep the American Dream alive,

It includes $300 billion in new loan authority, allowing the government to assist in more affordable mortgages for struggling home owners. It is estimated that at the closing of 2009, almost 2.8 million could lose their homes. Through this legislation, around 400,000 of those struggling could trade their loans in for more affordable ones.

There is also $3.9 billion alloted for communities to increase neighborhood value and safety by fixing up foreclosed homes in their areas, and $15 billion in tax cuts (which includes expansion for low-income housing tax credit and repayable credit of up to $7,500 for first time home buyers).