President Bush signs Housing Bill

President George W Bush has signed a landmark housing bill designed to provide mortgage relief for over 400,000 struggling U.S. homeowners, Fannie Mae and Freddie Mac as well as strengthen the housing finance system.

The Housing and Economic Recovery Act of 2008 will not help those who have already defaulted on their homes but will give the government authority to control Fannie Mae and Freddie Mac.

"We look forward to put in place new authorities to improve confidence and stability in markets, and to provide better oversight for Fannie Mae and Freddie Mac," White House spokesman Tony Fratto said. "The Federal Housing Administration will begin to implement new policies intended to keep more deserving American families in their homes."

To finance the rescue plan for mortgage companies, the bill raises the national debt ceiling to $10.6 trillion, an increase of $800 billion. According to reports, the bill is also expected to cost the taxpayers a sizable chunk of change rumored to be $25 billion.

The House had initially passed the bill a week ago, with Senate voting to have it sent to the president on Saturday.