• Listen to this segment

The Senate approved the Housing and Economy Recovery Act of 2008 last Saturday as home foreclosures continue to mount. According to new data released by RealtyTrac Incorporated, foreclosure filings in the second quarter more than doubled compared to last year. Nearly 750,000 homes across the nation received foreclosure-related notices during the second quarter of this year. The housing relief bill, which now awaits a signature from President Bush, will apparently provide aid to an estimated 400,000 homeowners. However, critics contend that the actual number of those who will be able to save their homes in the form of new mortgages at 85% of the appraised value, is closer to 260,000. As many as 140,000 homeowners, who would bring their failing mortgages to the Federal Housing Authority under the bill, could actually end up facing second foreclosure. Additionally the bill contains emergency financing for mortgage backers Fannie Mae and Freddie Mac as the U.S. Treasury would be allowed to buy shares in and provide credit to the two. The housing crisis in the context of the American sluggish economy is expected to continue into next year with an estimated 2.5 to 3 million additional foreclosures predicted.

GUEST: Jane D’Arista, economic analyst at the Financial Markets Center, which monitors the Federal Reserve as well as financial markets