Arizona Mortgage Rates August 1, 2008 (BK-0907309)
Mortgage Related Highlights This Week
This week was a landmark week for the mortgage and housing industry as President Bush signed the Housing and Economic Recovery Act of 2008 (HR 3221) meaning that the most sweeping housing legislation passed in recent memory is now officially law. There are many items in the bill (here is a short overview of the details of the bill) but a few highlights include:
- $300 Billion fund for FHA to support refinancing troubled mortgages provided that lenders write down the total debt to 90 percent of the current appraised value
- A fund for financial counseling and legal assistance funding
- A new regulator for Fannie Mae and Freddie Mac with greater powers than the current regulator (OFHEO)
- Conforming loan limits made permanent at 625,500 in high-cost areas and Fannie Mae and Freddie Mac (without this, they would have went back to 417,000 at the end of the year)
- The US Treasury will provide an unlimited line of credit to both Fannie Mae and Freddie Mac and will have the ability to buy stock in both Nationwide loan officer licensing and registration is established FHA/VA loan limits are set to match permanent limits set for Fannie Mae/Freddie Mac
- FHA/VA not allowed to implement risk based pricing – meaning FHA loans will be more expensive for all borrowers, not just those with bad credit
- Prohibits Down-Payment-Assistance programs such as Ameridream or Neihamiah (Jamie Geiger had a great post on this here)
- Provides a tax credit for first time home buyers (Heather Barr does a great job of covering this in her post here)
Is this housing bill “The Mother of All Bailouts“? Did it miss the mark? Will it do more good than bad? I don’t know. I am spending my time and energy trying to talk to clients about how they can benefit from the bill — because like it or not, it is now law.
One last thought — Steve, thanks for allowing us to participate in your blog! We look forward to continue to bring you mortgage related information each week.
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