Archive for the 'Real Estate News' Category
Bush Signs Historic Housing and Economic Recovery Act
July 30th, 2008 Categories: Real Estate News
Shortly after 7am this morning, President Bush signed the Housing and Economic Recovery Act of 2008. Widely known as a stimulus package designed to prevent further foreclosures, the bill covers a number of other areas including:
- Higher Loan Limits - raises the GSE (government sponsored enterprise), FHA and VA single-family loan limits on a permanent basis.
- GSE Regulatory Reform - increases regulation of Fannie Mae, Freddie Mac and the Federal Home Loan Banks (GSEs) by creating a new regulator and regulatory requirements.
- GSE Stabilization - establishes several new powers and authorities to stabilize the GSEs in the event of financial crises.
- Affordable Housing Trust Fund - creates from assessments on the GSEs businesses a fund to help prevent foreclosures and facilitate affordable housing.
- Licensing - encourages a nation-wide licensing and registry system for loan originators by setting minimum qualifications and assigning HUD responsibility for establishing requirements for those states not enacting licensing laws.
- Active Service Members - extends stays of foreclosure and legal proceedings from 90 days to 9 months and extends the 6 percent mortgage rate cap for one year after active duty.
- Truth in Lending Act (TILA) - adds new mortgage disclosure requirements under TILA.
- Veterans Matters- provides home improvement benefits for the disabled.
- FHA Rescue Plan - authorizes a new FHA “Hope for Homeowners Program” to refinance existing borrowers into fixed rate FHA mortgage products.
- FHA Modernization - modernizes FHA programs.
- Redevelopment of Abandoned and Foreclosed Homes - authorizes $4 billion in block grant funds for states to purchase and redevelop foreclosed properties.
- Counseling - authorizes funds for the Neighborhood Reinvestment Corporation (NRC)
- Public Housing Authorities - reduces regulatory requirements for smaller PHAs
- Tax Incentives - establishes a range of tax incentives, including first-time home buyer tax credits and expands the Low-Income Housing Tax Credit.
- Real Estate Investment Trusts (REITs) - loosens certain restrictions on REITs.
- Public Debt Limit - increases the Federal debt limit to $10.615 trillion.
Thanks to our Preferred Mortgage Broker Rob Clark and the Mortgage Bankers Association for this helpful overview. The full summary of the the Housing and Economic Recovery Act is available here.
For more information or specifics on the higher loan limits, call me at 703.927.4554.
Michael
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Alexandria Real Estate - Is It a Crises or Just a Problem Blown Out of Proportion?
July 22nd, 2008 Categories: Real Estate News
Are we really in a real estate crises or is it just a problem blown out of proportion? In Alexandria and Northern Virginia, Coldwell banker offices reported a 17.5% increase in homes under contract in April.
In May sales numbers rose 2% across the country and in some parts of the mid-Atlantic there were double digit increases over April.
And finally, just last week the National Association of Realtors reported four straight months of sales increases.
Consider the following:
- There are 120 million homeowners in the United States.
- Of that 120 million, one third are owned free and clear with no mortgage.
- One half of the remaining 80 million homes were bought before 2000 and still enjoy a 34% increase in median home prices.
- 95% of all homeowner pay their mortgage on time.
The homes in foreclosure? It’s 2%, with most of that in states like California, Nevada, Arizona and Florida. In fact, California has more foreclosures than 40 other states combined.
Want to hear more about what the numbers really say? Listen to Dennis Kneale on CNBC’s Business Nation, I think you’ll be glad you did.
As for the problem? For first time home owners it could be a real opportunity. Call me at 703.927.4554 and let’s add you to the growing numbers of home owners in Northern Virginia.
Michael
Related articles:
The Good News That No One is Hearing - Real Estate Prices Rise for Four Straight Months
Coldwell Banker Reports April Increase in Northern Virginia Home Sales
June Housing Report Reflects Available Mortgage Money and Properties Priced to Move
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The Good News That No One is Hearing - Real Estate Prices Rise for Four Straight Months
July 14th, 2008 Categories: Real Estate News
Anyone remember Little Good News, the Anne Murray hit from 1983? In it she bemoaned the the fact that it was always bad news that made headlines, never good news. And what she wanted, just once, was a little good news.
Well, despite the gloom and doom of Wall Street, banks failing and oil prices rising, the good news is this - the National Association of Realtors (NAR) is reporting FOUR STRAIGHT MONTHS OF RISING HOUSING PRICES.
According to NAR statistics, the median home price fell from a high of $230,200 in July 2006 to a low of $195,600 in February, a drop of 15%. But it has risen every month since then.
The May index, which will be revised on July 24 will show a median price of $208,600, up $13,000 or 6.6%.
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