Mortgage Market News Roundup
There has been a ton of news related to the mortgage market today. It’s a veritable explosion of mortgage news. Here are some of the highlights from recent mortgage and real estate related news:
- Congress considers extending the home buyer tax credit: Right
now, lawmakers are thinking about extending the first time home buyer tax credit by six months, so that it would expire in May 2010 instead of at the end of November 2009. (Congress is also mulling a $15,000 tax credit for any home buyer.) - Mortgage brokers no longer have to register with the FHA: Mortgage brokers have been on the decline since the housing market crash. However, the FHA is now saying that “direct endorsement” lenders are liable for loans done through brokers, while brokers do not have to register. Additionally, net worth requirements for brokers will no longer be required.
- Senate increases FHA insurance allowance: For fiscal year 2010, the FHA has been authorized by the Senate to insure $400 billion of single family home loans. This is an increase, and should allow more people to take advantage of FHA loans.
- Home prices unlikely to peak for 10 years: Moody’s feels that it will take 10 years for home prices to recapture their peaks.
- FDIC Might borrow from the Treasury: All the bank failures, thanks to bad mortgage loans, have been tapping out the FDIC’s funds. As a result, the FDIC is considering that it might have to borrow money from the U.S. Treasury.
For the most part, economic data and trends are showing that things are starting to recover. Even if home prices don’t peak for a decade, the housing market has stabilized, and that is actually providing some help for home builder stocks and real estate funds on the stock market. So, overall, a recovery in the housing market is likely, even though it may be a gradual recovery.
September 21st, 2009 at 5:33 pm
[…] all the hoopla surrounding mortgage market news about brokers and possible tax credits, the idea of refinancing has been kind of shunted to the […]
September 22nd, 2009 at 12:27 pm
[…] Mortgage market news has been generally improving, as people rush to take advantage of the first time home buyer tax credit. Additionally, there has been an increase in buyers looking to benefit from the bargains found in buying distressed homes. There are a number of great deals out there, even as home prices increase. […]