CHRONOLOGY-Bush administration housing, finance measures
WASHINGTON, Feb 21 (Reuters) - The Bush administration has announced a number of steps aimed at limiting an expected wave of U.S. home foreclosures and easing strains in credit markets linked to a sharp downturn in the U.S. housing sector.
Following is a chronology of administration-backed efforts:
Feb 13 -- President George W. Bush signs into law a $168 billion two-year stimulus package. The plan raises limits on "conforming mortgages" financed by congressionally chartered mortgage finance companies Fannie Mae (FNM.N) and Freddie Mac (FRE.N) to $729,750 from the current $417,000 through Dec. 31.
It also indefinitely raises the limit on Federal Housing Administration-backed mortgages to that same level from $362,790. Raising conforming and FHA-backed loan limits is expected to lower interest rates on some home loans.
Feb 12 -- Mortgage finance providers and the departments of the Treasury and Housing and Urban Development unveil the "Project Lifeline" program, which would delay home foreclosure for some delinquent borrowers to buy time for a lender and a borrower to try to agree on new mortgage terms.
Feb 4 -- Under Bush's proposed budget for fiscal 2009, state and local governments would be allowed to issue an additional $15 billion in tax-exempt mortgage bonds over three years. The administration also proposed loosening restrictions on the mortgage bond program, which is currently targeted at first-time buyers, to include refinancing of subprime loans with tax-free debt.
Dec 6, 2007 -- Bush announces a plan, aimed at approximately 500,000 Americans who are at risk of losing their homes as adjustable rate mortgages reset at higher rates, that would offer a five-year rate freeze to subprime borrowers who took out loans from Jan. 1, 2005, through July 31, 2007, and who face rate resets over the coming 2-1/2 years.
Oct 31, 2007 -- Treasury Secretary Henry Paulson announces a plan to send over 200,000 troubled borrowers notices from mortgage servicers advising them to seek new loan terms to avoid foreclosure.
Oct 15, 2007 -- After talks brokered by the Treasury Department, Citigroup (C.N), Bank of America Corp (BAC.N), and JPMorgan Chase & Co (JPM.N) announce a facility to prevent funds known as structured investment vehicles from having to dump assets into the market. The fund was viewed as a way restore stability in credit markets unnerved by mortgage delinquencies. On Dec. 21, the banks abandoned the plan, saying it was unnecessary after institutions launched independent rescues of troubled funds.
Oct 10, 2007 -- In an initiative coordinated with the Treasury Department, mortgage lenders and services band together to form the "Hope Now" group to help homeowners struggling to make payments on their mortgages. A chief initial goal is to contact homeowners before mortgages become so delinquent that foreclosure is almost unavoidable.
Aug 31, 2007 -- Bush proposes lowering down payment requirements for FHA loans and raising the limit on mortgages that would be eligible. The FHA would launch a program to allow refinancing to FHA-backed loans. (Compiling by Mark Felsenthal; Editing by Brian Moss)
