The Paulson pushed GSE reform bill known as the Housing Economic Recovery Act of 2008 (H.R. 3221) which earlier this week passed the House has now passed the Senate becoming law with the President’s signature which he already pledged to give by the end of July. I first read about the Senate passage in a OFHEO press release.

Mortgage yield spread premium is responsible for up to two thirds of the revenue earned on every mortgage. Yet most Americans have no knowledge of mortgage yield spread premium or how to avoid it.

Secret Side Agreements For Repairs Is Mortgage Fraud!

Here’s how it happens…

Buyer contracts with Seller for a $200,000 home with the Seller paying all the closing costs which equates to 3% or $6,000….the current FNMA maximum. During the inspection, a faulty furnace is discovered. Let’s assume for this example it’s a working furnace, so it’s not noted on the appraisal report as a “require repair”. After all the appraiser is not an inspector. The inspector on the other hand did discoverer the problem and the buyer wants the furnace repaired. A reasonable request…and let’s say, this repair will cost $2,000.