Senate Bill 2338: The Barney Frank Amendment Update
Cut all you want... From MSN, a good read, Jubaks latest, Why The Fed is running scared.
No Truth in Lending... The Fed will meet Tues Dec 18th to consider proposed amendments to Regulation Z, which implements the Truth in Lending Act and the Home Ownership and Equity Protection Act.
We hope they do not consider any "safe harbor" under TILA or any law, for lenders that rework loans, such as the current house bill (HR 4178) Emergency Loan Modification Act of 2007 proposes.
This is not a bailout, its immunity from bad lending practices as outlined here. Speaking of bailouts...
The Barney Frank Amendment Update... we outlined our position on bailouts through the raising of FHA loan limits (HR 1852).
And why loan freezes won't work.
In the Senate there are two bills, the Senate version (S2325) of the Expanding American Homeownership Act of 2007 which was read into committee on 11/08.
And Senator Dodd's bill (S2338) The FHA Modernization Act of 2007, which passed today.
Under S2325 which is stuck in committee: loan limits would have been increased to 100% of the median home price in the area.
Under S2338, which passed: loan terms are extended from 30 to 40 years, downpayments are lowered from 3% to 1.5%...
and the FHA loan limits are raised in expensive markets from $362,790 to $417,000. In less expensive markets, from $200,160 to $271,050.
(S2338) must now be reconciled against the house version (HR1852) which would have raised FHA loan limits to the absurd levels of 125% or 175% of the median...
in effect subsidizing jumbo loans of $700K and up in expensive markets. We hope the Senate keeps the lid on the loan limit right where its at.
Speculators, lenders, bond holders and foolish buyers who overpaid, should not be bailed out under any circumstance, except those already outlined here.
Lower interest rates won't add much to home sales because prices are still falling, the supply of housing is still climbing and mortgage money is tight.
Lower interest rates won't jump-start the refinancing boom that had kept consumers spending because the drop in home prices pretty much wipes out the chance for most homeowners to refinance and take money out of the equity to spend on other items.
Lower interest rates won't lower soaring gasoline and home-heating-oil prices and won't stop food costs from climbing.
And lower interest rates won't make loan write-offs at big banks any smaller.
No Truth in Lending... The Fed will meet Tues Dec 18th to consider proposed amendments to Regulation Z, which implements the Truth in Lending Act and the Home Ownership and Equity Protection Act.
We hope they do not consider any "safe harbor" under TILA or any law, for lenders that rework loans, such as the current house bill (HR 4178) Emergency Loan Modification Act of 2007 proposes.
This is not a bailout, its immunity from bad lending practices as outlined here. Speaking of bailouts...
The Barney Frank Amendment Update... we outlined our position on bailouts through the raising of FHA loan limits (HR 1852).
And why loan freezes won't work.
In the Senate there are two bills, the Senate version (S2325) of the Expanding American Homeownership Act of 2007 which was read into committee on 11/08.
And Senator Dodd's bill (S2338) The FHA Modernization Act of 2007, which passed today.
Under S2325 which is stuck in committee: loan limits would have been increased to 100% of the median home price in the area.
Under S2338, which passed: loan terms are extended from 30 to 40 years, downpayments are lowered from 3% to 1.5%...
and the FHA loan limits are raised in expensive markets from $362,790 to $417,000. In less expensive markets, from $200,160 to $271,050.
(S2338) must now be reconciled against the house version (HR1852) which would have raised FHA loan limits to the absurd levels of 125% or 175% of the median...
in effect subsidizing jumbo loans of $700K and up in expensive markets. We hope the Senate keeps the lid on the loan limit right where its at.
Speculators, lenders, bond holders and foolish buyers who overpaid, should not be bailed out under any circumstance, except those already outlined here.
Comments