The House of Representatives has moved two bills designed to aid the flagging real estate market forward to the Senate for approval. Whether they will approve them this year and put some solutions to the market troubles in our stockings for Christmas remains to be seen.
The first bill, FHA Reform S. 2338 will provide existing homeowners with secure and affordable refinancing alternatives and more mortgage options for first-time homebuyers. Increasing the supply of affordable mortgage money is a critical component for bringing stability to the nation’s turbulent housing markets.
The second allows regional increases to the Freddie Mac/Fannie Mae loan limits. This change will make lower-cost mortgage financing available to more families trying to buy homes in high cost areas like ours and increase the supply of mortgage money.
Had FHA loans been a viable product in the recent past, many families would not have fallen prey to the risky sub-prime mortgages causing record numbers of defaults and foreclosures. The specific reforms proposed include: increased FHA mortgage limits nationwide and in high cost areas and lower FHA downpayment requirements.
Please, Santa, please...
No comments:
Post a Comment