A look at key parts of congressional housing bill

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The housing bill Congress is preparing to send President Bushwould:
-Give the Federal Housing Administration $300 billion in newlending authority and relax standards to provide affordable,fixed-rate mortgages to debt-ridden homeowners. Any losses would becovered by an affordable housing fund financed by Fannie Mae andFreddie Mac, the government-sponsored companies that financemortgages.
-Allow the Treasury Department temporary authority to lend money toFannie and Freddie or buy their stock to avert a collapse of one orboth of the mortgage giants. The authority expires on Dec. 31,2009.
-Create a new regulator and tighten controls on Fannie and Freddie,including power for the regulator to approve pay packages forcompany executives. Create a new affordable housing fund drawn fromtheir profits. Permanently raise the limit on the loans they maybuy - set to revert to $417,000 by the end of the year - to$625,000 in the highest-cost areas. Allow them to buy loans 15percent higher than the median home price in certain cities.
-Provide $3.9 billion in grants to the hardest-hit communities forbuying and fixing up foreclosed property.
-Modernize the FHA and allow it to back loans for riskierborrowers. Permanently increase the size of loans the agency mayinsure - currently set to revert to $362,790 by the end of the year- to $625,000 in the highest-cost areas. The agency could buy loans15 percent higher than the median home price in certain cities.
-Bar the FHA from insuring mortgages in which the borrower's downpayment is paid by the seller, beginning on Oct. 1, 2008. Place aone-year moratorium to bar the agency from charging premiums basedon the riskiness of the homeowner, until Oct. 1, 2009.
-Provide $15 billion in housing tax breaks, including forlow-income housing. Give a credit of up to $7,500 for first-timehome buyers who purchase residences between April 9, 2008, and July1, 2009. Allows people who don't itemize their taxes to claim a$500-$1,000 deduction on their 2008 property taxes.
-Give states an additional $11 billion in tax-free municipal bondauthority for low-interest loans to first-time home buyers,construction of low-income rental housing and refinancing subprimemortgages.
-Offer protection from investor lawsuits for mortgage holders thatmodify loans to borrowers who are in default or about to default.
-Provide $180 million for pre-foreclosure counseling and legalservices for distressed borrowers.