Mortgage Bill gets House Approval
- By:
- MortgageLoan.com | May 09, 2008
The House of Representatives on Thursday approved legislation to create a $300 billion mortgage insurance fund designed to provide billions more in homeowner aid.
Despite several veto threats from President Bush, lawmakers passed the bill in a 266-154 vote. The bill which has been championed by House Financial Services chairman Barney Frank, D-Mass is hoping the mandate extended to the Federal Housing Administration (FHA) will help stabilize a housing market rocked by the credit crunch and a tide of foreclosures.
"This legislation, in short, will expand the FHA program so that borrowers in danger of losing their homes can refinance into lower-cost, government-insured mortgages that they can afford to repay," said Democratic majority leader Steny Hoyer.
In order to qualify a mortgage lender would have to cut the debt to no more than 85% of a home's current appraised value. If the FHA-refinanced loans went into default, the FHA would pay the lender the remaining principal owed.
The Congressional Budget Office estimates the FHA expansion program would cost taxpayers $1.7 billion. It also estimates the program could end up insuring up to 500,000 borrowers.
The next step is for the Senate to pass the bill, but even if does get approval, the still remains a significant threat of a veto by President Bush who claims the FHA expansion would force taxpayers "to take on excessive risk."
Mortgage Rates in Slight Decline
- By:
- MortgageLoan.com | May 16, 2008
Rates on 30-year mortgages fell for the second consecutive week by 4 basis points to 6.01 percent with an average 0.6 point for the week ended May 15, a weekly survey released by Freddie Mac on Thursday revealed.
Mortgage Application Volumes Climb
- By:
- MortgageLoan.com | May 15, 2008
Mortgage applications again rose for a second consecutive week by 2.9 percent. The rise for the week ending May 9 has been largely fueled by an increase in demand for home refinancing loans as interest rates dropped.
FBI Warns of Rising Mortgage Fraud
- By:
- MortgageLoan.com | May 14, 2008
The FBI, which is currently involved in over 1300 active investigations into mortgage 'irregularities' reported on Tuesday that as a result of the sinking housing market, they expect to witness a sharp rise in the number of 'suspicious' mortgage activity reported.
Michael Jackson's Neverland Escapes Foreclosure
- By:
- MortgageLoan.com | May 13, 2008
Pop legend Michael Jackson has averted foreclosure on his Neverland Ranch, following late intervention from real estate investment firm, Colony Capital.
Jingle Mail May be Urban Myth
- By:
- MortgageLoan.com | May 12, 2008
Despite reports to the contrary, a trend described as "walking away" or "jingle mail" which involves homeowners voluntarily defaulting on their loans even though they possess the means to make payments has been dismissed by experts as a myth.
5.49
5.19
