Housing Rescue Bill

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edward479

10 Posts

Posted - 07/25/2008 : 10:31:12 AM

OK. The so called Housing Rescue Bill is being passed and signed. We can argue all day about how it is a bailout for the banks. I, and many others, believe this will help stem the tide of foreclosures. It will help Fannie and Freddie. It will help alot of people who should not have bought a house they could not afford in the first place.

What I want to know is how will it help mortgage brokers? I don't mean just the raising of the loan limits. How else? Will brokers be able to work with banks on short refi's? Do the new rules allow for more lates on the mortgage history?

valredwood

6 Posts

Posted - 07/25/2008 : 10:35:29 AM

I have been trying to find out what exactly is on the bill. Does any one know where I can read the bill that is being passed or get a summary of what is being passed. Thanks!

chmax7

414 Posts

Posted - 07/25/2008 : 10:39:32 AM

I am thinking it might bring confidence back into the MBS market so rates could continue to come down.

VVance

1764 Posts

Posted - 07/25/2008 : 10:51:48 AM

I'm sold now...

http://www.mortgagenewsdaily.com/video/embed.asp?id=1733

mganovsky

1739 Posts

Posted - 07/25/2008 : 10:56:49 AM

It will allow more folks to refi into FHA, I am excited about being able to help more people around the country.

bgmancini

26 Posts

Posted - 07/25/2008 : 11:01:43 AM

Thanks for posting Edward, I was thinking the same question when you posted it. The new guidlelines that came out on July 14th instantly took a few loans out of the running plus with the new DU 7.0 it is seriously challenging! All I have heard consistenly about this rescue program is that they are going to force lenders to negotiate down to 85% (though i also read 90%) of LTV. Really interested in hearing more though, it seems the exact details of the bill have not been revealed.. am I wrong?

Originate_This

337 Posts

Posted - 07/25/2008 : 11:04:52 AM

quote:
Originally posted by bgmancini

Thanks for posting Edward, I was thinking the same question when you posted it. The new guidlelines that came out on July 14th instantly took a few loans out of the running plus with the new DU 7.0 it is seriously challenging! All I have heard consistenly about this rescue program is that they are going to force lenders to negotiate down to 85% (though i also read 90%) of LTV. Really interested in hearing more though, it seems the exact details of the bill have not been revealed.. am I wrong?

Lenders are not forced to negotiate. It is strictly voluntary.

valredwood

6 Posts

Posted - 07/25/2008 : 11:10:48 AM

does the bill call for increasing the conforming loan limit from $417K to $625K I read something to that on CNBC.com Does anyone know?

edward479

10 Posts

Posted - 07/25/2008 : 11:12:45 AM

What I am trying to grasp is are the lenders going to work directly with FHA or are they going to work with brokers who are taking a current customer possibly to a different lender?

chmax7

414 Posts

Posted - 07/25/2008 : 11:28:42 AM

any clue what time the Senate are meeting on Saturday or do you think everything will be wrapped by then?

VVance

1764 Posts

Posted - 07/25/2008 : 11:33:16 AM

quote:
Originally posted by chmax7

any clue what time the Senate are meeting on Saturday or do you think everything will be wrapped by then?

Don't yet know a time...and there's still a slight chance of a Republican filibuster...stay tuned...

StayInHomeGuy

281 Posts

Posted - 07/25/2008 : 11:37:36 AM

quote:
Originally posted by VVance

I'm sold now...

http://www.mortgagenewsdaily.com/video/embed.asp?id=1733

FOX news is hilarious

this isn't surprising at all based on some of the things I read from you over the past few days..it's clear that you watch and read too much news.

I Like how the "reporter" only focuses on one negative aspect of this ENORMOUS bill, and fails to mention anything else, he just keeps going back to the same point over and over....I'll admit that this bill isn't perfect but it's long overdue, they had plenty of time to figure this thing out.

I n response to the original question, here is a good link that summarizes this monster.

http://wealthwithmortgage.com/286/hr3221bill/

VVance

1764 Posts

Posted - 07/25/2008 : 11:58:50 AM

quote:
Originally posted by StayInHomeGuy

quote:
Originally posted by VVance

I'm sold now...

http://www.mortgagenewsdaily.com/video/embed.asp?id=1733

FOX news is hilarious

this isn't surprising at all based on some of the things I read from you over the past few days..it's clear that you watch and read too much news.

I Like how the "reporter" only focuses on one negative aspect of this ENORMOUS bill, and fails to mention anything else, he just keeps going back to the same point over and over....I'll admit that this bill isn't perfect but it's long overdue, they had plenty of time to figure this thing out.

I n response to the original question, here is a good link that summarizes this monster.

http://wealthwithmortgage.com/286/hr3221bill/

B of A basically wrote this bill for the Congress.

If you want to beleive the packaging on this thing, that's your prerogative. I see it as a massive bailout, and that link to Fox News is the first I'd seen of anyone, outside of some site's on the net, reporting it like this. Good for them.

This thing seems destined to pass, bail-out, credit card tracking, raising of the Federal Debt and all.

Put it this way, if you believe in bigger Government and if you believe all the spin that's been placed on this thing, then you should also believe the original pitch...that Mortgage Broker's caused the whole mess to begin with.

edward479

10 Posts

Posted - 07/26/2008 : 11:18:06 AM

There is no doubt that this is a government takeover of more private enterprise. I am a lifelong conservative and a constitutional fundamentalist. It does not matter at this point. The bill is going into law.

So, how can we as brokers use this to our advantage?

VVance

1764 Posts

Posted - 07/26/2008 : 11:27:05 AM

quote:
Originally posted by edward479

There is no doubt that this is a government takeover of more private enterprise. I am a lifelong conservative and a constitutional fundamentalist. It does not matter at this point. The bill is going into law.

So, how can we as brokers use this to our advantage?

Good question! I'm still trying to figure this thing out.

Mandyvilla

2755 Posts

Posted - 07/26/2008 : 3:10:54 PM

I don't dispute anything stated here.....in fact, I am rather disgusted and that's my limit on the subject.

What is not clear to me and I REALLY want more clarification on: will anyone be able to do these FHA Rescue loans? IE, could Chevy Chase do an FHA Rescue refi for a First Horizon loan that is upside down? If it's a case of staying w/ the same lender on the original loan, I will have more to say, lol.

Mandyvilla

2755 Posts

Posted - 07/26/2008 : 3:25:13 PM

The way I understand it, the current loan would be retired. The negative portion not paid would be set aside and either paid against the future equity (if it bounced back) OR the insurance fund created by the inception of the program would pay off the neg am. It shouldn't need to be optional if the current lender doesn't wish to participate. If the loan is being paid off, they have to accept it. Where I see it being optional is if the new lender wishes to offer the loan, they would have to pay into the program. If they have to pay into the plan, it's going to be a bit more expensive, don't you think? Too expensive? We won't know until it's here...... If it's set up so the current servicer gets to choose if they participate, guess what, uh, no. It won't work.

HMDApproved

620 Posts

Posted - 07/26/2008 : 3:50:27 PM

I don't see it creating any more business for L/O's.

I do believe that banks now will be much more eager to modify loans for those in trouble. Lets face it, banks will make a fortune on these loans at 3%, even 2% so why not just modify them? They will not "cut the loan amounts".

I hope I am wrong but sounds like the business to focus on now is modifications.

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