'Independence Day' for Housing

27 June 2008 - 10:00am

Congress is promising to pass before Independence Day a sweeping set of housing legislation that would offer refinancing packages, a trust fund for affordable rental housing and offer tax credits for purchasing unoccupied houses.

"With sinking home values continuing to drag down the economy, Congress is poised to approve a huge package of housing legislation, including a refinancing program aimed at rescuing hundreds of thousands of homeowners in danger of foreclosure and the most sweeping government overhaul of mortgage financing since the New Deal.

The centerpiece of the Senate package is a rescue-refinancing plan aimed at stemming the tide of more than 8,000 new foreclosures a day that lenders are filing across the country. The plan would allow distressed borrowers and their lenders to stem losses by allowing qualified owners to refinance into more affordable, 30-year fixed-rate loans with a federal guarantee.

The legislation would also provide benefits for first-time buyers, who would receive a refundable tax credit of up to $8,000, or 10 percent of the value of a home, on purchases of unoccupied housing.

The bill also establishes an Affordable Housing Trust Fund, to be financed by $500 million to $900 million in fees from Fannie Mae and Freddie Mac. The fund will cover any expenses related to the foreclosure rescue plan for three years, and will be used to create affordable rental housing."

Full Story: Approval Is Near for Bill to Help U.S. Homeowners

Source: The New York Times, June 25, 2008

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Independence day for housing, et al ad nausia

Submitted by wgaboy on Thu, 12/25/2008 - 22:07.

Read the Federal Reserve bank of St Louis
REVIEW
Jan-Feb 2006,
Vol 88, number 1
pp31-56
The Evolution of the Subprime Mortgage Market

on page 39 take a look at the fine bunch, the top 10 B & C (subprime categories) originators.
now I'll save you the trouble of reading--
the conclusion is on page 55.
Oh by the way, skim the next article, on causes of bank distress.
Oh and be sure to look at the key legislative changes summaries on page 66
GRAMM-LEACH-BLILEY (repealed Glass-Stegal)
Give credit where credit is due.
Looks like we can thank GRAMM for a fiasco far bigger than shutting down the Federal Govt for a a few days.

.
google up GRAMM and you will seet the story quoting him
a. July Washington Times Interview
"We have sort of become a nation of whiners. You just hear this constant whining, complaining about a loss of competitiveness, America in decline," said the former Texas senator. "You've heard of mental depression; this is a mental recession." Watch comments made by former Sen. Phil Gramm »

Gramm also said the media was responsible for fostering unnecessary anxiety over the state of the economy. "Misery sells newspapers," he said. "Thank God the economy is not as bad as you read in the newspaper every day."

And to think GRAMM has students/interns who
"learn" under him.
Maybe they ought to head for the door, asap.