Senators Chris Dodd (D-CT) and Richard Shelby (R-AL), Chairman and Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs, announced last week that they have developed a bipartisan agreement to help address the nation's housing crisis.

Called "The Foreclosure Prevention Act of 2008," the bill under consideration contains provisions to:

1) Increase the FHA loan limit

2) Provide $4 Billion to purchase and rehabilitate foreclosed properties in communities hit hardest by foreclosures and delinquencies

3) Provide $100 Million in Pre-foreclosure counseling for families in need

4) Enhance Mortgage disclosure information for consumers to be given to them no later than 7 days prior to closing

5) Lengthen time a lender must wait to start foreclosure proceedings after a soldier returns from service

6) Provide $10 Billion for refinancing of subprime loans for first-time homebuyers through Federal tax-exempt private bonds

7) Provide tax credit of $7000 over two years for purchasers of homes in foreclosure and

8) Extend net operating loss carryback to homebuilders hit hardest by the slump.

This latter measure will extend a law allowing corporations to apply excess net operating losses to tax returns from prior profitable years and receive any applicable refunds. For 2008 and 2009 losses, the provision would extend the "net operating loss (NOL) carryback" to four years (back to 2004 and 2005, respectively) from the two years currently in law. Measures to prevent companies from abusing the intent of the provision are also included.

For more details on these proposed measures are available, here.