How does this plan relate to the recently passed Housing and Economic Recovery Act of 2008?
Our plan supplements and expands the current legislation in many ways. First, this plan is much broader than the 2008 Housing Act. The Act would produce at most $300 Billion in new credit. Restrictions on who would qualify and stringent losses imposed on lenders make it unlikely that anywhere near that much credit will be injected into the financial and mortgage markets. That plan gives a tax credit of as much as $7,500 that operates as a 15-year interest-free loan to new home buyers. However, because that credit must be claimed on a tax return, it does little to help new home buyers finance their purchase. The housing act does provide for lower down payment loans through the Federal Housing Administration, which will surely help new home buyers.
