Housing Assistance Bill Passes Senate
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.
The press release from the Office of Federal Housing Enterprise Oversight, the current regulator of the GSEs, Fannie Mae and Freddie Mac said in a release dated today July 26, 2008:
Statement of OFHEO Director James B. Lockhart
“I congratulate and thank Members of the House and Senate on final passage of a sound and comprehensive GSE regulatory reform bill. These provisions will go a long way toward restoring confidence in the housing markets by creating a new, stronger regulator with all the necessary tools to oversee Fannie Mae, Freddie Mac and the Federal Home Loan Banks. OFHEO is ready to move forward quickly as part of the new Federal Housing Finance Agency, created by this bill.”
I searched for other agency reports or government press releases to this effect, but found none.
Of course, trusting the current GSE regulator to keep up with the Housing Assistance Bill is a no-brainer since the Senate was slated to vote today and it was widely accepted they would reward Paulson with quick action.
I believe this Housing Assistance Bill is nothing more than a glorified bail out for Fannie Mae and Freddie Mac which could end up costing the tax payers over $100 Billion.
To find out why I think this is a GSE bail out ala Bear Stearns, you can read my post from a few days ago, Housing Bill With GSE Bailout Goes To House Today, when the House passed it.
Good Luck!
UPDATE: July 26, 2008 15:41
NAMB - The National Association of Mortgage Brokers is hailing the passage of the legislation which is never good. But the NAMB press release does outline a few more key elements I have yet to mention, so here goes. NAMB says the key elements are:
1. Modernization of the Government Sponsored Enterprises, Fannie Mae and Freddie Mac, (GSEs) and the Federal Housing Administration (FHA);
2. A nationwide loan originator licensing and registration system;
3. Increases in the FHA loan limits to the lesser of 115 percent of the local area median home price or $625,500 (up from $362,790)’;
4. Increases the 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; and
5. A plan by the Department of Treasury to provide funds to aid the GSEs.
Being a mortgage broker for 15 years, I’m always a little embarrassed by NAMB since with them everything is good if it benefits mortgage brokers even if it hurts tax payers. I don’t really see anything in these elements that isn’t already happening or in other legislation other than giving the Treasury a blank check to save Fannie and Freddie.
Silly rabbit…tricks are for kids…
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Tags: GSE Bailout • GSE Reform • Housing Assistance Bill • Loan Officer • Mortgage Originator
Investors and home owners had a tough year.
It started with the real estate market crash, than the mortgage crisis and now foreclosures.
Everybody is looking for help with their investments, from the homeowner down the street to the big investor up on the billboards.
In the past year 267 banks closed their doors and more banks are on the verge of closing.
Seriously let’s face it “the world is in a serious trouble and no body can do anything to change it”.
How did we let this great economy we had to collapse like this?
Who can we blame except our selves?
I don’t think we need to look for the blame but we definitely need to fix it somehow and we can do it, home owners and investors.
Let’s talk to you homeowner:
There are many options to save your home and get a mortgage.
1. Fha loans
2. Conventional loans with lower loan to value
3. Hard money loans or private money mortgage loans(which is the same thing).
Most of you homeowners are not knowledgeable enough to know how to save your homes your selves, many of you that have lost their homes already could possibly save it if you would gain some knowledge.
But no one is perfect and I’m not expecting you to go to school and study what to do with your home while you’re trying to save it, but you can hire a professional to help you.
I’m a mortgage broker from los angeles california and I’ve seen so many people that could save their homes, but because they didn’t have the knowledge they’ve lost it instead.
Lets help each other and ourselves to bring this great world back to what it was 3 years ago!
Know your options and hire a professional mortgage or real estate broker to help you, brokers are the one that knows better than anybody else.
Why not to go to the bank next door?
Normally banks are narrow minded and they don’t know how to be creative, because they know only one thing- what their bank has to offer.
You want someone that knows how to get things done, if it’s with conventional lending(which is the banks), fha mortgages(which is government loans) and the private money lending(which is private investors that are acting as the bank in some cases).
So many people don’t even know that private money lending or hard money loans are an option, so homeowners loose homes with lots of equity in them.
I think that private money lending is the next thing for investors and home owners, since banks can’t qualify anyone anymore.