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Triangle Business Today

It's Almost Here - Housing and Mortgage Relief!

Posted July 27, 2008

The US Senate passed H.R. 3221 (also known as The Housing and Economic Recovery Act of 2008) this morning 72-13 in a rare Saturday session. The legislation now moves to the desk of President Bush, where it’s expected that he will sign the bill sometime this week as an added show of confidence for the nation’s housing and mortgage markets.

This is an historic piece of legislation and it helps not only consumers, but the housing and mortgage industries alike…

Here are a few of the highlights of the Act in its current state...


• Raises FHA loan limits to the lesser of 115 percent of the local area median home price or $625,500 (up from $362,790).

• Authorizes $300 billion in loan guarantees through fiscal year 2011 for a voluntary program to help at-risk borrowers refinance into viable mortgages.

• Permanently increases cap on mortgage loans Fannie Mae and Freddie Mac can purchase (“conforming loan limit”) to the lesser of $625,000 or 115 percent of an area’s median home price. Authorizes FHFA to adjust limit according to annual housing price index.

• Creates a new independent agency, the Federal Housing Finance Agency (FHFA), to regulate Fannie Mae, Freddie Mac and the Federal Home Loan Bank System, to be funded through assessments on those GSEs.

I’ll bring you more details on this once it is signed into law by The President. It looks as though the effective date would be October 1, 2008. Stay Tuned!


Jeremy M. Salemson
CEO
Corporate Investors Mortgage Group, Inc.
www.cimginc.com

4 Comments

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  • Wags Jul 29, 2008

    This is hardly a bailout. The have put so many restriction on this program that few will qualify, the original lender will have to be willing to lose a bunch of money and the originating lender will be willing to negotiate all the new paperwork. Not worth the effort. Another money losing proposition from our gov't.

  • JAFOinWF Jul 28, 2008

    Check out http://www.stopthehousingbailout.com/

  • mlimberg Jul 28, 2008

    This is a great way to drag out this housing problem for the next ten years, and reward the idiots of America!

    Take action America, vote the idoits in Washington "OUT" this November!

  • JAFOinWF Jul 28, 2008

    This bailout is a terrible idea. It rewards incompetence in the banking institutions and irresponsibility in the homeowners. The taxpayers will be paying for this and will plunge this country into greater debt and closer to depression. Also, there is alot of things in this bill that have nothing to do with bailout. Like all credit card transactions have to be reported to the govt. What does that have to do with bailout? It's just more govt and waste for govt overhead.

About this Blog:

Jeremy Salemson, CEO of Corporate Investors Mortgage Group, blogs about economic trends and data and their impact on Triangle business. Each week, he interviews a Triangle-area business leader for a personal look at the local economy.