Housing and Economic Recovery Act of 2008. Among other things, HERA authorized the FHA to guarantee up to $300 billion in new 30-year fixed rate mortgage loans to subprime borrowers if lenders wrote down principal balances to 90% of the current appraised value of the mortgaged property. HERA also established the FHFA and provided the statutory framework for the FHFA to place FNMA and FHLMC into federal conservatorships.

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