News

07/28/2008 - Congress and the Bush Administration pass Housing Rescue Bill.

The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.

It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac — pillars of the home loan market whose losses have sparked investor fears — and tightens controls over the two government-sponsored businesses.

The final bill combines a number of measures that will assist at-risk homeowners and stabilize the mortgage market. Key measures include:

1. Modernization of the Government Sponsored Enterprises, Fannie Mae and Freddie Mac, (GSEs) and the Federal Housing Administration (FHA);
2. A nationwide loan originator licensing and registration system;
3. Increases in the FHA loan limits to the lesser of 115 percent of the local area median home price or $625,500 (up from $362,790);
4. Increases the cap on mortgage loans Fannie Mae and Freddie Mac can purchase (“conforming loan limit”) to the lesser of $625,000 or 115 percent of an area’s median home price; and
5. A plan by the Department of Treasury to provide funds to aid the GSEs.
6. A tax credit for first-time homebuyers for houses purchased between April 9, 2008 and July 1, 2009.

These changes should provide stability to the housing market and help the economy.  goodmortgage supports the licensing of Loan Originators and companies.  "All our loan officers are licensed already, as they should be if they are helping homebuyers with the largest financial transaction in their lives." says Keith Luedeman, goodmortgage.com CEO.  "We also believe that the increases in loan limits will allow many of our customers to afford homes, when the current market conditions did not allow them to refinance or purchase at great rates.  The credit for 1st time homebuyers is fantastic, and should provide the incentive needed for more American's to buy in to the American Dream of home ownership."

These changes will be implemented in the next few months by the mortgage market.