Thanks for stopping by - This is a work in progress, so please feel free to jump in with me - any comments, feedback, or participation in the conversation is encouraged! You might want to want to sign up for email updates on the right, or subscribe to my RSS feed. Thanks for visiting!
Glad to have you back - have you considered signing up for email updates on the right, or subscribing to my RSS feed? Thanks for visiting!
From Goldman Sachs:
Fiscal Stimulus- Becomes law this week; the first checks will be mailed in mid-May
On Wednesday, President Bush is likely to sign into law the recently passed economic stimulus bill.
Loan limits: The legislation raises the limit on the size of mortgage that Fannie Mae and Freddie Mac may purchase and that the Federal Housing Administration (FHA) may insure. In both cases, the increases are temporary and apply only to loans originated by the end of 2008. Under the bill, Fannie and Freddie may purchase loans up to 125% of the median home price in an area, up to a national limit of $730,000. FHA limits would see the same increase. In addition, the floor on FHA limits would be raised so that larger FHA-insured loans would become available in low-cost areas. Area-specific loan limits for the GSEs and FHA should be issued by mid-March. These provisions should benefit borrowers, but the effect may be modest. Jumbo rates have been higher than the present conforming rate (30 yr fixed) of roughly 5.5% since only mid-2005, and the rate on these new conforming-jumbo loans may not come down as far as the traditional conforming rate. Also, of those who originated loans in late 2005 through 2007, most have lost equity in their homes since. In virtually every city in which the increased limits are likely to apply, the Case-Shiller index now stands below its late 2005 levels.
ALSO TODAY WELLS FARGO Released a memo stating that they do not intend to accept applications based on the new loan limits until all details have been unveiled, and GSEs have responded with their impact studies, etc.
Talk about a wet blanket!
I’ll post more as I receive…