Housing and Economic Recovery Act of 2008


Housing and Economic Recovery Act of 2008

Legislation in the United States that guarantees sub-prime mortgages up to $300 billion, provided the lenders write down the value of the mortgage up to 90% of the actual value of the real estate. The Federal Housing Administration was charged with implementing the guarantees. The act was passed in July 2008 and enabled the government to put Freddie Mac and Fannie Mae into federal receivership in September.