CHICAGO (WBBM) - President George Bush today signed what's being called the most significant housing legislation in decades. 

As WBBM's Debra Dale reports, it will allow homeowners who cannot afford their mortgage payments to refinance into more affordable government-backed loans.  The measure also offers temporary financial relief and tightens controls over government- sponsored mortgage companies Fannie Mae and Freddie Mac.

The Executive Director of the Illinois Association of Mortgage Professionals, Marv Stockert, tells Newsradio 780, he's cautiously optimistic the legislation will help stabilize the the housing market, but he doesn't believe the law will help as many as 400,000 homeowners.

Marv Stockert says the new law allows struggling homeowners to refinance up 2.125 percent of their home's value, but he's not sure how many lenders will be willing to take that risk.

Stockert worries about the law eliminating the down payment assistance program and increasing the FHA down payment requirement from 3 to 3.5 percent.  He says that will shut out many first time homebuyers.  He says the slumping housing market  needs as many homebuyers as possible.

Stockert applauds the provision that requires all loan officers in the U.S. to be registered.  He believes that may help protect borrowers from unscrupulous lenders.