President Bush recently signed the American Housing Rescue and Foreclosure Prevention Act into law. The multi-faceted measure brings relief to the battered real estate market.

The initiative came together with broad-based support from the House of Representatives and the Senate.

Rep. Bill Pascrell (D-8th) said the act is sorely needed to blunt the real estate downturn.

"New Jersey’s communities have been hit hard by the mortgage crisis. With the enactment of this legislation, millions of families who are struggling through the foreclosure process will stand a better chance of keeping their homes. This will help the American economy recover."

According to federal sources, principal aspects of the legislation include:

A new Federal Housing Administration program that will help at least 400,000 foreclosure facing families. This is made possible through $300 billion in loan guarantees.

The law raises the number of homes that can benefit from Fannie Mae and Freddie Mac, two government sponsored enterprises, by raising loan limits in high housing cost areas to $625,000.

Almost $4 billion will be provided for community development block grants to help municipalities blighted by vacant foreclosed homes. The package also earmarks $150 million for foreclosure prevention counseling and $30 million for troubled borrower legal services.

Pascrell said the relief endeavor helps America as a whole.

"The rapid decline of the housing market has taken its toll on our economy. Foreclosures hurt us all. When a home forecloses, property values drop and entire neighborhoods suffer."

Caley Gray - a Pascrell aide - said housing distress calls have been arriving at the eight congressional district headquarters in Paterson.

"We have heard from a number of people having difficulty paying their mortgages, and seeing what sort or relief is available."

Gray said those in need can call the Pascrell’s office at 973-523-5152. He said constituents can find out which housing act provisions best apply to their respective situations.

Lou D’Angelo of Castle Home Mortgage of Totowa, a housing lender, shared his views on the housing act. He said the law as a good step from the federal government towards addressing the real estate crisis.

He said the government acted prudently by shoring up Fannie Mae and Freddie Mac. He said those two housing loan giants need to be protected.

"What are you going to do? Let Fannie and Freddie go under? Fannie and Freddie hold 50 percent of the loans in the United States."

D’Angelo said he wishes the legislation could help more foreclosure facing homeowners. He said, nationwide, the number of troubled mortgages runs into the millions.

"I was kind of hoping it would help a lot more people than 400,000. Four hundred thousand is a drop in the bucket."

D’Angelo conceded, given the problem’s prevalence, it is hard for Washington to craft a bill that could help everyone. He said the housing crisis could be eased if every lender could give mortgage reductions to those in dire straits. He added no financial institution wants innumerable foreclosures on its hands.

He said housing bubble has led to some house cleaning. He added the trend has driven away predatory mortgage brokers.

"It forced a lot of people who didn’t belong in the business to get out."

D’Angelo said some lenders had been offering unrealistically enticing deals, regardless of a person’s income. He added some examples were 100 percent financing and money back at closing.