2008-07-25 — reuters.com
The U.S. Senate voted on Friday to limit debate on a bill aimed at shoring up both the housing market and mortgage finance companies Fannie Mae and Freddie Mac, paving the way for a final vote expected on Saturday.
...
In addition to the throwing a lifeline to Fannie and Freddie, the sweeping legislation would authorize the Federal Housing Administration to refinance $300 billion of failing mortgages and provide communities hard-hit by home foreclosures with about $4 billion in federal aid.
The proposal also contains fresh tax incentives for prospective home buyers and bond investors to help put a floor under a housing market devastated by record foreclosures left in the wake of a multi-year boom.
Just what we need, more tax incentives for home buyers. Didn't that have something to do with us getting in this fix in the first place? Guess we'll never learn.
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cooper at 23:26 2008-07-25 said:
Refinancing provisions for a borrower under this bill severly limit the number of people that can qualify. First, loan to be refinanced must be originated between December of 2005 and June 1 of 2007. Next, the existing mortgage holder must accept a write down to 90% of the homes current appraised value. In addition the borrower's current housing dti MUST be greater than 40%. (why is anyone with this debt to income on housing payment even in a home loan?) Borrowers will have to share profits with the FHA for selling their home after the refinance. Many variables will limit FHA exposure under these guidelines as well as make it nearly impossible for a borrower to refinance. Permalinkadd a comment | go to forum thread
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