US Government Role in Housing Market Wanted
A number of groups in the housing industry are strongly requesting the continued involvement of the U.S. Government in the industry. These groups want the government’s involvement because it will help keep the availability of mortgage credit high.
The relationship between the government and the groups in the industry would be one where the groups pay the government a fee in return for a guarantee on the mortgages. Also, there would have to be more oversight and transparency for housing government-sponsored enterprises. If this becomes a reality the government guarantees will need to be extremely clear in order to prevent another mortgage crisis.
Friday, July 23, 2010
Monday, July 12, 2010
Subpoenas for Private Mortgage Bonds
The Agency responsible for federal regulation of Fannie Mae and Freddie Mac has issued 64 subpoenas in an attempt to determine whether or not some of the issuers of private mortgage bonds are liable for losses taken by Freddie Mae and Freddie Mac.
The FHFA has joined this aspect of the investigation because the two financing giants have had difficulties obtaining the correct documents during their personal searches. Although the names of those being subpoenaed were not released, a number of Wall Street banks are among the biggest private mortgage bond issuers.
If the subpoenas result in liability amongst the private banks, the FHFA will use the additional funds to offset taxpayer injections.
The Agency responsible for federal regulation of Fannie Mae and Freddie Mac has issued 64 subpoenas in an attempt to determine whether or not some of the issuers of private mortgage bonds are liable for losses taken by Freddie Mae and Freddie Mac.
The FHFA has joined this aspect of the investigation because the two financing giants have had difficulties obtaining the correct documents during their personal searches. Although the names of those being subpoenaed were not released, a number of Wall Street banks are among the biggest private mortgage bond issuers.
If the subpoenas result in liability amongst the private banks, the FHFA will use the additional funds to offset taxpayer injections.
Friday, July 2, 2010
Homebuyer Tax Credit Extension
In a move late on June 30th, the Senate decided to extend the closing deadline for the homebuyer tax credit, which was set to expire at Midnight on June 30th. The House of Representative had already signed the extension and now the document is awaiting President Obama’s signature, which is expected to come sometime next week. The document, titled the Homebuyer Assistance and Improvement Act of 2010, stipulates that any homebuyer who signed their sales contract prior to April 30, 2010 and closes before September 30th will qualify for the tax credit.
The original tax credit document was the American Recovery Reinvestment Act (signed February 2009) and gave first time homebuyers an $8,000 tax credit on their sale. Later in the year Congress decided to also enable a $6,500 tax credit for non-first time buyers.
The reason for this extension of the tax credit is that under the initial rules, many homebuyers who had signed their sales contract signed prior to April 30th were still in the process of closing as the June 30th deadline became imminent. The new September 30th deadline should allow enough time for most homebuyers to close their sales contracts and benefit from the tax credit.
In a move late on June 30th, the Senate decided to extend the closing deadline for the homebuyer tax credit, which was set to expire at Midnight on June 30th. The House of Representative had already signed the extension and now the document is awaiting President Obama’s signature, which is expected to come sometime next week. The document, titled the Homebuyer Assistance and Improvement Act of 2010, stipulates that any homebuyer who signed their sales contract prior to April 30, 2010 and closes before September 30th will qualify for the tax credit.
The original tax credit document was the American Recovery Reinvestment Act (signed February 2009) and gave first time homebuyers an $8,000 tax credit on their sale. Later in the year Congress decided to also enable a $6,500 tax credit for non-first time buyers.
The reason for this extension of the tax credit is that under the initial rules, many homebuyers who had signed their sales contract signed prior to April 30th were still in the process of closing as the June 30th deadline became imminent. The new September 30th deadline should allow enough time for most homebuyers to close their sales contracts and benefit from the tax credit.
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