Provisions of the housing bill that President Bush signed into law

By
Real Estate Agent with Keller Williams Realty Plano

Provisions of the housing bill that President Bush signed into law Wednesday:

• Gives the Federal Housing Administration $300 billion in new lending authority and relaxes standards to provide affordable, fixed-rate mortgages to an estimated 400,000 debt-ridden homeowners. Any losses will be covered by an affordable housing fund financed by Fannie Mae and Freddie Mac, the government-sponsored companies that finance mortgages.

• Allows the Treasury Department temporary authority to lend money to Fannie and Freddie or buy their stock to avert a collapse of one or both of the mortgage giants. The authority expires on Dec. 31, 2009.

• Creates a new regulator and tighten controls on Fannie and Freddie, including power for the regulator to approve pay packages for company executives. Creates a new affordable housing fund drawn from their profits. Permanently raises the limit on the loans they may buy to $625,000 in the highest-cost areas. Allows them to buy loans 15 percent higher than the median home price in certain cities.

• Provides $3.9 billion in grants to the hardest-hit communities for buying and fixing up foreclosed property.

• Modernizes the FHA and allows it to back loans for riskier borrowers. Permanently increases the size of loans the agency may insure to $625,000 in the highest-cost areas. The agency can insure loans 15 percent higher than the median home price in certain cities.

• Prohibits the FHA from insuring mortgages in which the borrower's down payment is paid by the seller, beginning on Oct. 1, 2008. Places a one-year moratorium prohibiting the agency from charging premiums based on the riskiness of the homeowner, until Oct. 1, 2009.

• Provides $15 billion in housing tax breaks, including for low-income housing. Gives a credit of up to $7,500 for first-time home buyers who purchase residences between April 9, 2008, and July 1, 2009. Allows people who don't itemize their taxes to claim a $500-$1,000 deduction on their 2008 property taxes.

• Gives states an additional $11 billion in tax-free municipal bond authority for low-interest loans to first-time home buyers, construction of low-income rental housing and refinancing subprime mortgages.

• Offers protection from investor lawsuits for mortgage holders that modify loans to borrowers who are in default or about to default.

• Provides $180 million for pre-foreclosure counseling and legal services for distressed borrowers.

Information provided by:

Walter "Scotty" Scott
Senior Loan Officer
WR Starkey Mortgage, LLP
Office: 972.599.5463
Cell: 630.215.4008
eFax: 866.222.1181

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Rainmaker
470,265
Bill C. Merrell
Ph.D. - Merrell Institue
Merrell Institute ~ Appraisal Education Network

Hopefully it will help.

Bill

August 01, 2008 12:32 AM
Ambassador
1,518,686
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

So many changes. Hopefully, we will find that they all have a positive effect on the market.

August 01, 2008 12:35 AM
Rainmaker
470,265
Bill C. Merrell
Ph.D. - Merrell Institue
Merrell Institute ~ Appraisal Education Network

Do you think that this law will effcet the current situation, or do you think it will slow down future foreclosures. I think it will slowdown future homes in the market but it will do little for our inventory at present.

What do you think?!

Bill

August 01, 2008 12:38 AM
Rainmaker
9,405
Rene Burchell
Keller Williams Realty Plano

I have to believe this will give us the boost we need.  We NEEDED this bill in place to help buyers into either the current forclosed homes on the market or other "active"  current listings in our market.  I believe this will help the buyers who are out there but may be hesitant in purchasing.  If we believe this will help then our buyers will feel more secure in their purchase.  When our buyers are happy then we become busier with referrals. Get ready to be busy again!

August 01, 2008 12:46 AM
Ambassador
1,255,166
Robert (Vegas Bob) Swetz
Commercial & Residential Real Estate Agent
REALTY ONE GROUP - LAS VEGAS, NEVADA 702.443.7156

 Thank you for all the information, I will look your blog over when I have more time.

 I have had a interest in finding Investment properties in Texas.

August 02, 2008 02:01 PM
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Rainmaker
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Rene Burchell

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