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jjacovo
54 Posts |
 Posted - 05/09/2008 : 1:37:38 PM
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| I just received a post stating FHA H.R. 3221 passed in the House of Rep. From what I read, this will allow people who are upside down to refinance and gives investors who buy foreclosed properties a 7k tax credit. Principal balances may be reduced to 85% of appraised value to allow refinance, which is great for homeowner but didn't mention incentive to SPs and lenders. Bush says he will veto. This would be huge for LOs! But does it have a chance? |
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walding714
352 Posts |
Posted - 05/09/2008 : 2:06:03 PM
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I haven't heard about this law yet, BUT I have heard of principal reductions. Has anyone else?
quote:
Originally posted by jjacovo
I just received a post stating FHA H.R. 3221 passed in the House of Rep. From what I read, this will allow people who are upside down to refinance and gives investors who buy foreclosed properties a 7k tax credit. Principal balances may be reduced to 85% of appraised value to allow refinance, which is great for homeowner but didn't mention incentive to SPs and lenders. Bush says he will veto. This would be huge for LOs! But does it have a chance?
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jtm7332
387 Posts |
Posted - 05/09/2008 : 2:15:30 PM
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| Even if Bush does veto it, that does not mean it is dead. It can still get pushed through with enough support. |
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lewman7
128 Posts |
Posted - 05/09/2008 : 2:21:40 PM
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| Bush is a dam bush I can see fannie not fha they should bail us out they got us into this mess and with bofa the mess will get worse. I lost 4 deals to bofa in the last month. They are doing 95 % no doc second homes tell me those are not gonna kill bofa. short bofa with all you got and bush pass this fha law please. |
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StayInHomeGuy
15 Posts |
Posted - 05/09/2008 : 2:35:58 PM
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Let's not get into politics on this one.... I don't want to start :)
Anyhow this bill was passed by the house, now it needs the senates approval, and even if it gets that Bush will still have the power to shoot this thing down. Unfortunately the house didn't pass on a 2/3 majority vote, therefore Bush has the final say. I just hope he passes this thing, it will do wonders for us in the business (especially here on the reverse side) but more importantly for the millions of people who are struggling. |
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jtm7332
387 Posts |
Posted - 05/09/2008 : 2:42:06 PM
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| It does not matter how much it passed by the first time. If it is vetoed it can still be passed by a 2/3 vote. |
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Banker0679
6480 Posts |
Posted - 05/09/2008 : 2:43:27 PM
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either way it's another FHA SECURE PROGRAM loan.
it's only designed to help out 500k americans....THAT'S IT! |
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jjacovo
54 Posts |
Posted - 05/09/2008 : 2:45:42 PM
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quote:
Originally posted by StayInHomeGuy
Let's not get into politics on this one.... I don't want to start :)
Anyhow this bill was passed by the house, now it needs the senates approval, and even if it gets that Bush will still have the power to shoot this thing down. Unfortunately the house didn't pass on a 2/3 majority vote, therefore Bush has the final say. I just hope he passes this thing, it will do wonders for us in the business (especially here on the reverse side) but more importantly for the millions of people who are struggling.
I agree this was not meant to be a political thread. I just wanted to see if I was reading this bill right. It would do wonders for business. 2/3 majority vote, I completely forgot my govt history class. |
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StayInHomeGuy
15 Posts |
Posted - 05/09/2008 : 2:46:45 PM
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quote:
Originally posted by jtm7332
It does not matter how much it passed by the first time. If it is vetoed it can still be passed by a 2/3 vote.
thats right, but based on the preliminary vote, there isn't any evidence that the ratio would improve if vetoed. Unfortunatley there are a few too many R House reps that have been convinced by Bush that this bill is a "bailout". |
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davidfr
437 Posts |
Posted - 05/09/2008 : 4:24:19 PM
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quote:
Originally posted by StayInHomeGuy
Let's not get into politics on this one.... I don't want to start :)
Anyhow this bill was passed by the house, now it needs the senates approval, and even if it gets that Bush will still have the power to shoot this thing down. Unfortunately the house didn't pass on a 2/3 majority vote, therefore Bush has the final say. I just hope he passes this thing, it will do wonders for us in the business (especially here on the reverse side) but more importantly for the millions of people who are struggling.
Why would it help those on the reverse side Please explain. |
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homebroker@sbcgl
1513 Posts |
Posted - 05/09/2008 : 4:29:43 PM
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Is this retail side of BofA? Have not seen this on wholesale.
quote:
Originally posted by StayInHomeGuy
Let's not get into politics on this one.... I don't want to start :)
Anyhow this bill was passed by the house, now it needs the senates approval, and even if it gets that Bush will still have the power to shoot this thing down. Unfortunately the house didn't pass on a 2/3 majority vote, therefore Bush has the final say. I just hope he passes this thing, it will do wonders for us in the business (especially here on the reverse side) but more importantly for the millions of people who are struggling.
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StayInHomeGuy
15 Posts |
Posted - 05/09/2008 : 4:31:01 PM
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quote:
Originally posted by davidfr
quote:
Originally posted by StayInHomeGuy
Let's not get into politics on this one.... I don't want to start :)
Anyhow this bill was passed by the house, now it needs the senates approval, and even if it gets that Bush will still have the power to shoot this thing down. Unfortunately the house didn't pass on a 2/3 majority vote, therefore Bush has the final say. I just hope he passes this thing, it will do wonders for us in the business (especially here on the reverse side) but more importantly for the millions of people who are struggling.
Why would it help those on the reverse side Please explain.
No Sweat
here on the Reverse side we deal with FHA lending limits as well (but they are different from the conventional side), county by county, a piece of this bill is the FHA modernization which will increase lending limits nationwide to $550k. As an example here in Seattle, King County the lending limit is $362,790, when and if this bill passes potential borrowers will have access to alot more money, and many who did not qualify before will. |
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ML
1372 Posts |
Posted - 05/09/2008 : 6:29:05 PM
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Aint gonna happen fellas! See:
http://www.brokeroutpost.com/loans/brokers/forum/topic.asp?TOPIC_ID=220969
House bill will not fly w/ King George, and the Senate will doctor this bill up so bad you won't recognize it! There aren't enough votes in either house to over ride a veto! |
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assassin17
2633 Posts |
Posted - 05/09/2008 : 6:38:39 PM
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| Perhaps Bush understands that by buying at a loss with FHA they are bailing out lenders by pushing their losses onto the taxpayers. DUH! |
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Originate_This
202 Posts |
Posted - 05/09/2008 : 7:10:39 PM
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quote:
Originally posted by StayInHomeGuy
No Sweat
here on the Reverse side we deal with FHA lending limits as well (but they are different from the conventional side), county by county, a piece of this bill is the FHA modernization which will increase lending limits nationwide to $550k. As an example here in Seattle, King County the lending limit is $362,790, when and if this bill passes potential borrowers will have access to alot more money, and many who did not qualify before will.
Where in the bill did it say that the new limit would be $550k? I only found this:
(a) In General- Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking subparagraph (A) and inserting the following new subparagraph:
`(A) not to exceed the lesser of--
`(i) in the case of a 1-family residence, 125 percent of the median 1-family house price in the area, as determined by the Secretary; and in the case of a 2-, 3-, or 4-family residence, the percentage of such median price that bears the same ratio to such median price as the dollar amount limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family residence, respectively, bears to the dollar amount limitation determined under such section for a 1-family residence; or
`(ii) 175 percent of the dollar amount limitation determined under such section 305(a)(2)(A) for a residence of the applicable size (without regard to any authority to increase such limitations with respect to properties located in Alaska, Guam, Hawaii, or the Virgin Islands and without regard to the high-cost area limitation under such section 305(a)(2)(B));
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steela
156 Posts |
Posted - 05/10/2008 : 05:24:32 AM
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Alot of people could have been saved had Fannie and Freddie just allowed for the liquidation of a non purchase 2nd to be rolled into a refi to 95-100%.
So many of these people got in on combos with a fixed 2nd and a 2/28 on the front. That 2nd locked them in. |
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homer5
243 Posts |
Posted - 05/10/2008 : 09:28:58 AM
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quote:
Originally posted by Banker0679
either way it's another FHA SECURE PROGRAM loan.
it's only designed to help out 500k americans....THAT'S IT!
Very true and at enormous expense to the taxpayer and country in general. While this may be good for a few originators pipelines, it's bad for the country and the economy. It essentially makes the taxpayer the subprime lender of choice.
It socializes the losses incurred by lenders and borrowers who never should have been homeowners in the first place. It's a terrible idea and one that needs to be vetoed. From what I've been reading, there isn't enough support for a veto override. Thank God. |
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ML
1372 Posts |
Posted - 05/10/2008 : 09:43:43 AM
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quote:
Originally posted by assassin17
Perhaps Bush understands that by buying at a loss with FHA they are bailing out lenders by pushing their losses onto the taxpayers. DUH!
I'm not sure I understand your rationale? All the PMM I write on previously foreclosed homes, are coming in at 55-75% of the previous mortgage balance. Had there been some sort of workout, many of these homes would not have gone into F/C in the first place!
Let's not forget the "collateral damage" of F/C's on the neighbors! |
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homer5
243 Posts |
Posted - 05/10/2008 : 09:55:32 AM
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| Essentially, this legislation provides a "put"/"stop loss" for lenders. Under the legislation, the maximum loss to a lender participating would be 15%. If the market drops another 15%, as is predicted by people who have called our scenario all along, the taxpayer is left with any real estate losses over 15% and the subsequent loan loss due to such depreciation. Which, as evidenced by our current state, is quite significant. |
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1stintegritymort
1201 Posts |
Posted - 05/10/2008 : 10:10:25 AM
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| even if the Bill does pass, it will only benefit the current lender/servicer. do you really think Wells, Chase, CW, BofA, Citi, Wachovia, etc are going to let a broker close the loan when they have to write it down to 85%? they are going to do the loan themselves and fund it WITHOUT the broker. the lenders are not going to take a loss only to let the broker make a profit. this is to protect the lender/servicer from future losses. this is not going to help broker's get more business. if anything, it will cause broker's to get LESS business. |
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mojojojo_1
297 Posts |
Posted - 05/10/2008 : 12:01:47 PM
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| this would work if the bank thought they are going to have to foreclose and realize the loss would be more then 85% |
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StayInHomeGuy
15 Posts |
Posted - 05/12/2008 : 08:11:45 AM
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quote:
Originally posted by Originate_This
quote:
Originally posted by StayInHomeGuy
No Sweat
here on the Reverse side we deal with FHA lending limits as well (but they are different from the conventional side), county by county, a piece of this bill is the FHA modernization which will increase lending limits nationwide to $550k. As an example here in Seattle, King County the lending limit is $362,790, when and if this bill passes potential borrowers will have access to alot more money, and many who did not qualify before will.
Where in the bill did it say that the new limit would be $550k? I only found this:
(a) In General- Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking subparagraph (A) and inserting the following new subparagraph:
`(A) not to exceed the lesser of--
`(i) in the case of a 1-family residence, 125 percent of the median 1-family house price in the area, as determined by the Secretary; and in the case of a 2-, 3-, or 4-family residence, the percentage of such median price that bears the same ratio to such median price as the dollar amount limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family residence, respectively, bears to the dollar amount limitation determined under such section for a 1-family residence; or
`(ii) 175 percent of the dollar amount limitation determined under such section 305(a)(2)(A) for a residence of the applicable size (without regard to any authority to increase such limitations with respect to properties located in Alaska, Guam, Hawaii, or the Virgin Islands and without regard to the high-cost area limitation under such section 305(a)(2)(B));
Sorry it took so long, I was out of town this weekend, anyway here you go:
HECM amendments in the FHA Modernization section of H.R. 3221 include:
a.) Elimination of the authorization cap that limits FHA to insuring no more than 250,000 HECMs. For the past year and a half, we have been operating under a “suspension” of the cap. This bill would permanently remove the cap.
b.) Establishing a single national maximum loan limit for HECM, at 132% of the GSE limit. Today, that would be $550,440. ($417,000 x 132%)
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slants
2855 Posts |
Posted - 05/12/2008 : 08:56:57 AM
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quote:
Originally posted by homebroker@sbcglobal.net
Is this retail side of BofA? Have not seen this on wholesale.
quote:
Originally posted by StayInHomeGuy
Let's not get into politics on this one.... I don't want to start :)
Anyhow this bill was passed by the house, now it needs the senates approval, and even if it gets that Bush will still have the power to shoot this thing down. Unfortunately the house didn't pass on a 2/3 majority vote, therefore Bush has the final say. I just hope he passes this thing, it will do wonders for us in the business (especially here on the reverse side) but more importantly for the millions of people who are struggling.
That's probably because BofA announced in October that they were shutting down wholesale effective 12/31/07 ;-). No wholesale programs available to compete with some of the BofA retail programs. |
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svallance
19 Posts |
Posted - 05/12/2008 : 09:17:29 AM
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| Its just going to be a wait and see thing. But keep your fingers crossed! |
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