Bill Would Aid Low Interest Rates

A bill introduced by House Financial Services Committee chairman Barney Frank, D-Mass., would direct the Treasury secretary to create a new program that stimulates home purchases by ensuring the availability of low mortgage rates. Treasury would purchase these affordable mortgages from Fannie Mae, Freddie Mac and the Federal Home Loan Banks if the bill is passed by both houses of Congress and signed by the president. The National Association of Realtors has been pushing for an interest rate buy-down program. The group welcomed the introduction of Rep. Frank's bill, which spells out how the new Obama administration should spend the remaining $350 billion of the Troubled Asset Relief Program. "The bill proposed by chairman Frank is an important first toward launching a real estate recovery," NAR president Charles McMillan said. The bill also directs Treasury to make sure that homeowners refinancing under the Federal Housing Administration's Hope for Homeowners program receive affordable interest rates.