Archive for the 'Government' Category
Latest FHA News is good !
Related Posts: Credit & Finance, Government, Real Estate News
hiStarting Jan. 1, 2009, FHA will insure single-family home mortgages up to $271,050 in low-cost areas, and up to $625,500 in high-cost areas. While the February stimulus package temporarily raised the FHA maximum higher, $625,500 still represents a significant increase over the original $362,790 limit.
| Currently No Comments »
REVERSE MORTGAGES LIMIT RISES
Related Posts: Credit & Finance, Government
hiOn Nov. 1, the limit on FHA-backed reverse mortgages, dubbed Home Equity Conversion Mortgages (HECMs), rises to $417,000 nationwide. The new rules will institute a 2-percent cap on origination fees for the first $200,000 of the loan amount or a 1-percent ceiling for higher amounts, with a $6,000 inflation-adjustable limit. Additionally, seniors will be allowed to use such loans to purchase a new property and extract equity from co-operative properties, and lenders will no longer be allowed to sell annuities and other financial products along with the mortgage.
Source: Christian Science Monitor, Margaret Price (10/27/08)
© Copyright 2008 INFORMATION, INC. Bethesda, MD (301) 215-4688
| Currently 2 Comments »
Fannie Mae and Freddie Mac’s conforming loan limit increases
Related Posts: Credit & Finance, Government, Real Estate News
hiTo stimulate activity in the housing market, the Mortgage Bankers Association plans to request a permanent increase in Fannie Mae and Freddie Mac’s conforming loan limit to $625,500 from $417,000. Speaking at the MBA meeting on Oct. 20, Garry Cipponeri of Chase Home Finance LLC said liquidity is critical, noting that jumbo loans are hard to come by in pricey markets such as California and New York. Recently, Congress temporarily increased the loan limit to $729,500, where it will stay until the end of 2008.
| Currently 4 Comments »
Government Takes $250 Billion Stake in Banks
Related Posts: Credit & Finance, Government, Real Estate News
hiThe U.S. Treasury announced plans today to purchase up to $250 billion in preferred stock from the nation’s top banks. The move is part of a plan that President Bush says will help prevent recession and preserve the free market.
“Government owning a stake in any private U.S. company is objectionable to most Americans – me included,” Treasury Secretary Henry Paulson said in a statement. “Yet the alternative of leaving businesses and consumers without access to financing is totally unacceptable. When financing isn’t available, consumers and businesses shrink their spending, which leads to businesses cutting jobs and even closing up shop.”
Nine major financial institutions have already agreed to the voluntary plan. Combined, these institutions will receive $125 billion in capital from the government. The banks are:
- Goldman Sachs Group Inc.
- Morgan Stanley
- J.P. Morgan Chase & Co.
- Bank of America Corp.
- Citigroup Inc.
- Wells Fargo & Co.
- Bank of New York Mellon
- State Street Corp.
As part of the voluntary program, the government will buy stock “on attractive terms that protect the taxpayer,” according to a joint statement by the Treasury, Federal Reserve, and FDIC.
The shares be non-voting, unless the matter directly affects the government’s rights as a shareholder. Banks that agree to be part of the program will accept restrictions on executive compensation while the government is holding the stock.
Paulson said taxpayers should expect a “reasonable return” from the stock and said the government will also receive warrants to buy additional stock from institutions participating in the program.
“The actions today are aimed at restoring confidence in our institutions and markets and repairing their capacity to meet the credit needs of American households and businesses,” Federal Reserve Chairman Ben Bernanke said in a statement.
Source: U.S. Treasury, Wall Street Journal
| Currently 1 Comment »
McCain would buy bad homeowner mortgages
Related Posts: Credit & Finance, Government, Real Estate News
hiRepublican presidential candidate John McCain is proposing a $300 billion program for the federal government to buy up bad home mortgages and allow homeowners to keep their houses.
McCain said: “Until we stabilize home values in America, we’re never going to start turning around and creating jobs and fixing our economy and we’ve got to get some trust and confidence back to America.”
McCain announced the plan during Tuesday’s debate. He said that as president he would direct the federal government to purchase mortgages directly from homeowners and mortgage providers. The loans would be replaced with fixed-rate mortgages, ostensibly at a loss to the government. This would really effect the Florida Real Estate market in a large positive way.
| Currently 1 Comment »