The Housing and Economic Recovery Act of 2008, P.L. 110-289, is likely to affect most owner-occupied housing in the United States through a variety of channels. The act creates a new, stronger, unified regulator for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (the housing GSEs). As a result of various provisions in the act, the secondary mortgage market is likely to be broadly affected. For example, the Secretary of the Treasury is given (until December 31, 2009) the authority to lend or invest in the housing GSEs on whatever terms the Secretary determines to be appropriate. Starting in 2009, the maximum high cost conforming loan limit is increased to 150% of the conforming loan limit; based on 2008 limits, this would be $625,500. For the first time, Fannie Mae and Freddie Mac can go into receivership. The act also modernizes many aspects of the Federal Housing Administration (FHA). In high-cost areas, the maximum loan that the FHA can insure is identical to the maximum mortgage amount that the housing GSEs can purchase. The minimum downpayment on FHA-insured mortgages is increased from 3% to 3.5%, seller-assisted downpayment assistance is prohibited, and there is a moratorium until October 31, ...