The U.S. House of Representatives was very busy Thursday, passing The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) by a vote of 266 to 154, and The Neighborhood Stabilization Act (H.R. 5818) by a vote of 239-188.
This sweeping legislation is Congress' most comprehensive attempt yet to address foreclosures in the housing market. The bill includes versions of H.R. 5830, H.R. 1852, H.R. 1427, H.R. 5579, and amendments to Preserving the American Dream for Our Nation's Veterans. The plan is projected to help roughly 500,000 borrowers at a cost of $2.7 billion over five years.
It's important to note that these measures were not voted into law and still await Senate action. If passed by the Senate, it would still need the approval of the President who has reportedly threatened to veto both bills.
To learn more about this legislation, here is a summary from the House Committee on Financial Services.
Fannie Mae Changes Policy and Pricing on "Conforming" Jumbos
Fannie Mae announced a series of new initiatives called "Keys to Recovery" in its first quarter 2008 report this week. The new effort is geared toward providing liquidity, stability, and affordability to the housing and mortgage markets for the long term, keeping struggling borrowers in their homes, assisting prospective home buyers with home purchases, and stabilizing communities affected by the mortgage market downturn. According to the report, the initiatives include:
1) A new refinancing option for up-to-date but "underwater" borrowers with loans owned by Fannie Mae that will allow for refinancing up to 120 percent of a property's current value;
2) A renewal and expansion of the company's partnership with the state Housing Finance Agencies to provide $10 billion in financing for qualified, first-time home buyers;
3) In partnership with Self-Help Credit Union, a new initiative that allows families in hard-hit communities to reside in foreclosed properties on a rent-to-own basis, and
4) New jumbo-conforming loans will be priced flat to conforming for portfolio asset acquisition through the end of the year.
This last initiative could mean great news for your clients in high-cost regions as defined by HUD. Reach out to your clients and prospects to let them know about this change.
Key talking points:
- Jumbo-loan borrowers got some good news today.
- Fannie Mae announced that they will buy jumbo loans at a lower price.
- This means if you're in a high-priced metro region and looking to purchase or refinance into a jumbo loan, then you may have the opportunity to save money.