Contents of Stimulus Bill, More Lender Guideline Changes
Contents of Stimulus Bill
The $790 billion economic stimulus plan is on track for vote today in the House, and the Senate will either vote later today or over the weekend. There will be $4 billion to repair and make more energy efficient public housing projects; $2 billion for the redevelop foreclosed and abandoned homes; $1.5 billion for homeless shelters and $2 billion to pay off loans on public housing accounts. $6.6 billion will be allocated to repeal a requirement that an $8,000 first-time home buyer tax credit be paid back over time for homes purchased from Jan. 1 to Nov. 30, unless the home is sold within three years. The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit’s expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009. The full credit is available to those making $75,000 or less ($150,000 for joint filers).
I could not find anything in the verbiage about raising loan limits, conventional or FHA. But feel free to try for yourself.
Mortgage Mods, Fed Bond Buying
Obama administration was creating a plan to subsidize mortgage payments for troubled homeowners. Reuters reported yesterday afternoon that the administration will work with mortgagors to re-write and subsidize mortgage payments for those with difficulty, but must pass a means test. There are no details, but the news did help to reverse a Dow Jones that was down another 250 points. This speculation that the government will support the housing market by working with borrowers rather than in buying treasuries seems to have energized portions of the financial community. Speaking of the Fed, they bought $23.2 billion of mortgage-backed securities last week, mostly 4 & 4.5% coupons, which include 4.25-5.125% 30-yr mortgages. The only news out today is the University of Michigan Consumer Confidence Survey, which is expected to drop slightly. The 10-yr is back up to 2.83% and mortgage prices are taking a breather, worse by about .250.
Guideline Changes
ING announced that beginning today,
“Interest-Only is no longer available on properties located in California. Financing on second homes is no longer available on properties located in California. And LTV price incentives are no longer available on properties in California.”
But hey, it’s the Golden State!
Chase, due to their heavy lock volumes, stated that they have
“recently experienced a significant increase in the number of submissions to our Chase Underwriting Department. In order to ensure we are meeting the needs of both our delegated and non-delegated customers, we will no longer accept submissions from delegated customers on transactions that are within their delegated authority.”
Daily Humor
A young woman awoke from a deep sleep.
She told her husband, “I just dreamed you gave me a diamond necklace for Valentine’s Day. What do you think it means?”
“You’ll know tonight,” he said.
That evening the man arrived home with a small package for his wife. She was so excited; she trembled as she unwrapped it – only to find a book called “The Meaning of Dreams”.