President Bush Signs the Historic Housing Bill! Read on!

This message taken from an email sent out by the California Association of Realtors and sent to all members:

This morning President Bush signed the "Housing and Economic
Recovery Act of 2008." For the past several years, C.A.R. and
the NATIONAL ASSOCIATION OF REALTORS� have aggressively lobbied
for Congress to pass numerous provisions found in this historic
bill. Many of you participated in these efforts by communicating
with your Members of Congress.

Thank you to all of you who responded to these Calls-for-Action.
Your efforts have made a difference. This federal housing bill
is a significant move in the right direction for California
homeowners. It will aid in stabilizing our economy and help stem
foreclosures, while also providing support to first-time
homeowners.

The legislation will assist an estimated 400,000 homeowners
facing foreclosure, many of whom reside in California, by
allowing them to refinance their current mortgages with a
Federal Housing Administration (FHA)-backed loan. The bill also
will permanently increase FHA, Fannie Mae, and Freddie Mac loan
limits in high-cost areas.

The bill permanently increases the conforming loan limit to
$625,500. C.A.R. has long advocated for higher conforming loan
limits. In February, the Economic Stimulus Act of 2008 was
signed, temporarily raising the conforming loan limit in
high-cost areas to $729,750 from $417,000 until December 31,
2008.

Although we would have liked Congress to make permanent the
current $729,750 loan limit, C.A.R. is pleased with the new
permanent loan limit of $625,500. It will allow California
homeowners to refinance their loans into safe affordable loan
products and allow first-time home buyers to enter the market.

The new loan limits for Fannie Mae and Freddie Mac are the
greater of either $417,000 or 115 percent of an area�s median
home price, up to $625,500. The new FHA loan limit will be the
greater of $271,050 or 115 percent of an area�s median home
price, up to $625,500. Both new loan limits will be effective
at the expiration of the economic stimulus limits on December
31, 2008.

C.A.R. also supports the following bill provisions:

A temporary increase in mortgage revenue bonds to refinance
subprime mortgages.
New regulator for Government Sponsored Enterprises to restore
investor confidence in GSE loans and help the market and economy
stabilize.
First-time home buyer tax credit, which allows first-time home
buyers to receive a tax refund worth up to 10 percent of a
home�s purchase price, up to a maximum of $7,500. The refund
serves as an interest-free loan and the homeowner is required to
repay it in equal installments over 15 years.
Temporary raise in the loan limit for the Veterans Affairs home
loan guarantee program to the same level as the economic
stimulus limits until the end of 2008.
Adjustment to the Foreign Investment in Real Property Tax Act of
1980 (FIRPTA), allowing sellers to provide the non-foreign
affidavit to a qualified closing entity and not just the buyer.
The setting of minimum requirements for mortgage originators,
which mandates fingerprinting of loan originators and
establishes a nationwide loan originator licensing and
registration system. The requirements do not apply to those only
performing real estate brokerage activities unless they are
compensated by a lender, mortgage broker, or other loan
originator. States will have the ability to implement more
stringent laws.
The creation of a National Affordable Housing Trust Fund to help
cover the cost of the FHA rescue plan for the first five years
and develop affordable housing in subsequent years.

Other provisions in the legislation:

The Treasury Department�s proposal to create a federal backstop
program to insure the financial well-being of Fannie Mae and
Freddie Mac.
The FHA�s inability to insure loans that utilize a seller-funded
down-payment assistance program. Down-payment assistance from
family, employers and other nonprofits is still allowed.
The Community Development Block Grant Programs� $4 billion
allotment for communities to purchase and refurbish foreclosed
homes.



What do you think about this bill? Send me comments to be posted at a later time!
Stacy.dover1@era.com


Anyone you know sitting on the fence waiting for the right time to buy - tell them this IS THE TIME TO BUY!!!!!!!!!!!

- Stacy