HOUSING RESCUE BILL

Bush approves housing rescue bill

The US housing market slump has hurt the wider US economy

US President George W. Bush has signed into law a bill designed to help struggling US homeowners and prop up the battered US housing market.

The new law creates a $300bn (£150bn) rescue fund to help thousands of homeowners get cheaper loans.

It may also be used to bail out the struggling mortgage giants Freddie Mac and Fannie Mae, which own or guarantee around half the nation's mortgage debt.

The White House said the bill would boost confidence in the housing market.

It said the bill was designed to help hundreds of thousands of Americans trapped by mortgages they can no longer afford.

They will be offered the chance to refinance their debts with state-backed, fixed-rate loans.

White House spokesman Tony Fratto said that the Federal Housing Administration would begin right away to implement the legislation that is "intended to keep more deserving American families in their homes".

However, the bill's critics have said it will cost US taxpayers billions of dollars, and query the wisdom of bailing out irresponsible homeowners or unscrupulous lenders.

Reposessions soar

According to US research firm RealtyTrac, the number of US homes in some stage of foreclosure more than doubled between April and June from the previous year.

The figures showed that one in every 171 US households was in he process of losing their home - up 121% on last year.

The problems in the housing market stem from sub-prime lending to those with poor credit histories.

Many of these borrowers have been unable to keep up with their mortgage repayments, and now face losing their homes.

This in turn has hurt the many financial institutions worldwide that invested in instruments linked to sub-prime mortgages.

Freddie Mac and Fannie Mae do not lend directly to homebuyers, instead buying mortgage debt from approved lenders such as banks, and then selling it on to investors.

Their shares have plunged in recent months on fears that they will not be able to cover their losses.

The new law expands a temporary line of US Treasury credit to the two firms and gives the government the option to buy their shares in them if they ran into trouble.

ARTICLES SOURCE: http://news.bbc.co.uk

Hospitals come under fire

By JAYAGANDI JAYARAJ and TAN KARR WEI

TWO private hospitals located in Kota Damansara have come under fire from the residents and the business community in the area.

Residents and businessmen claim that the location of the two hospitals would only add to the traffic situation in the township.

One of the hospitals, which have begun ground clearing works, is located on a piece of land adjacent to the Giant hypermarket along Jalan PJU 5/26, next to the Dataran Sunway commercial centre.

Gugusan Dedap residents' association president Zamarudin Zainudin said a hospital should not be built within a commercial area that was prone to traffic congestion.

Project under fire: An aerial view of the hospital site. In the background is Dataran Sunway (white buildings) and a block of commercial shoplots that is under construction.

“Emergency vehicles would have problems getting into the area,” he said.

MBPJ Town Planning Department director Sharipah Marhaini Syed Ali said the hospital must submit a fresh application for approval to the council.

“When the initial building plans were approved, there were no objections from the the Selangor Development Corporation (PKNS), the owner of the neighbouring plots. Since residents are now complaining, we have rejected the building plans. They would have to do a comprehensive traffic study and resubmit plans,” she said.

Meanwhile, there are mixed reactions from business operators at Dataran Sunway about the opening of another specialist centre in the area.

The location of the four-block medical centre, occupying the corner lots of the commercial building along Jalan PJU 5/6, opposite The Strand, is said to be not conducive due to the high traffic volume anticipated in area after the opening of the Giant hypermarket.

A businessman who owns several shoplots in the area said due to the anticipated high traffic, it would be difficult for emergency vehicles to gain access to the area.

However, there are others who think otherwise.

Lee Hui Seng said the specialist centre provided medical facility for the residents.

He said Kota Damansara residents needed medical facilities, as the only hospital in the vicinity was the Tropicana Medical Centre, located next to the Segi College.

“But that is a big hospital with ambulance facilities whereas this specialist centre is for outpatient treatments,” he said.

He added the specialist centre would not add to the anticipated traffic jam in the area as unlike shopping malls, people do not visit hospitals everyday.

“Besides, the specialist centre would only generate more business to the area.

“People should view it as a life-saving subject and not as a bad omen,” he said.

Sharipah said the building plans for the specialist centre has been approved.

articles source: http://thestar.com.my