Housing and Economic Recovery Act of 2008

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The Housing and Economic Recovery Act is a law that was enacted with the aim of helping an estimated 400,000 borrowers in danger of losing their homes, enabling these individuals to refinance into more affordable government-insured mortgages. The law, signed into effect on July 30, 2008.[1]

The hope was that the legislation would strengthen and modernize the regulation of the housing government-sponsored enterprises – Fannie Mae and Freddie Mac (the enterprises) and the Federal Home Loan Banks (FHLBs or Banks) – and expands the housing mission of these government-sponsored enterprises (GSEs).

The program began on Oct. 1, 2008 and will end on Sept. 30, 2011.[2]


H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008.

The bill includes the following provisions:


NAR Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill