The new Housing Bill goes into effect on October 1.
It authorizes $300 billion to help homeowners and prevent them from going into foreclosure.
The bill also authorizes Treasury to provide Fannie Mae and Freddie Mac with an unlimited
line of credit and to buy stock in the companies to prevent them from failing.
Homeowners who are stuck in an unaffordable mortgage or have an adjustable rate mortgage (ARM) and their payment is set to go up after the fixed period is begins to adjust will be eligible for a low-cost mortgage insured by the Federal Government.
Loans up to $625,000 will be available in high income areas.
