The housing bill has been sent to the White House for signing. After passing the House by a vote of 272-152, the U.S. Senate followed on Saturday, sending the bill to the president, and should be signed into law this week.

The legislation will provide financial assistance to government-sponsored Fannie Mae and Freddie Mac by allowing the U.S. Treasury Department to extend credit to Fannie Mae and Freddie Mac as well as buy their stock. The move is seen as a way to help restore confidence in the U.S. housing market.

Homeowners will also be allowed to refinance their mortgages with lower-rate loans that will be backed by the Federal Housing Administration with the original lenders agreeing to take a loss on the original loan. Communities will receive assistance in buying and rehabilitating foreclosed and abandoned properties through grants totaling $3.9 billion.

Fannie Mae and Freddie Mac back or own almost half of all mortgages in the United States. The new law will also establish an independent regulator to watch over Fannie Mae and Freddie Mac with oversight of executive pay and the ability to create minimum capital requirements and place limits on their portfolios.

Other highlights of the new law will provide housing tax breaks, a cap on loans in some high-priced regions, and place a cap on the amount of government assistance provided to Fannie Mae and Freddie Mac without further legislation.