We had to take funds out of our 401k to stop a foreclosure on our house. Is there a new exemption for this.

No. To prevent a foreclosure ALLOWS you to take an inservice withdrawal. Plans are not required to permit withdrawals at all. They can choose to permit, permit only hardship withdrawals or not permit. To prevent a foreclosure does qualify as a hardship, but even if the withdrawal qualifies as a hardship, taxes and penalties are still due.

There was some talk about suspending penalties for certain withdrawals, but I don't think anything was signed into law.

Unfortunately, Scott is correct. You WILL have to pay the 10% Early Withdrawal Penalty, plus whatever tax is due to the IRS and the state.