The administration announced a new initiative to help the nation's hardest hit housing markets. President Obama has allocated $1.5 billion in aid for states where unemployment is high and home prices have fallen more than 20 percent in the aftermath of the housing bubble.
The president is setting up an "innovation fund" for state housing agencies to develop assistance programs for underwater, as well as unemployed homeowners in their communities. There will be a formula for allocating funding among eligible states based on home price declines and unemployment rates.
According to House Speaker Nancy Pelosi, the money will go to support homeowners in California, Nevada, Arizona, Florida, and Michigan. The Treasury must approve each Housing Finance Agency's (HFA) program design, which can include direct assistance for the unemployed and borrowers who owe more than their home is worth, as well as programs that address the challenges of second liens. The Treasury is expected to announce maximum state level allocations in the next two weeks, along with rules governing the submission of program designs by HFAs.
Source: DSNEWS.com, Carrie Bay, (02/19/2010)
Showing posts with label obama. Show all posts
Showing posts with label obama. Show all posts
Tuesday, February 23, 2010
Tuesday, February 2, 2010
Obama gets low grades for housing
A national survey released by Trulia shows that many Americans feel that President Barack Obama has not lived up to the hope he created during his campaign and his first 30 days in office. In Trulia's latest American Dream survey conducted online by Harris Interactive from January 19-21, 2009, President Barack Obama scored considerably lower marks on the topic of restoring the American dream of home ownership compared to a survey conducted February 20-24, 2009, after his first 30 days in office.
The current survey found that 37 percent of Americans gave President Obama a grade of "D" or "F" on the decisions he's made towards restoring the American dream of home ownership compared to only 22 percent in the February 2009 survey. Additionally, 54 percent gave him a grade of "A" or "B" in February 2009 compared to only 37 percent in January 2010.
Despite these lower grades, and the troubles that have continued to plague the U.S. housing market, the survey found that the "American Dream" of homeownership continues to be alive and well with more than three out of four Americans considering owning a home as a part of achieving their personal American dream.
Democrats and Republicans agree on the areas President Obama needs to focus on in 2010 to stabilize the U.S. real estate market. Creating jobs and job security continues to be at the top of the list with 62 percent of adults referencing it as a key priority for the President.
With foreclosures reaching record levels in 2009 and expected to grow even more this year, it's not surprising that 45 percent of adults included this as an important area of focus. Rounding out the top three priorities for President Obama is bringing/keeping low interest rates at 39 percent. Only 27 percent of Americans surveyed believe extending the home buying tax credit through the end of 2010 should be a key initiative to help stabilize the housing market.
The current survey found that 37 percent of Americans gave President Obama a grade of "D" or "F" on the decisions he's made towards restoring the American dream of home ownership compared to only 22 percent in the February 2009 survey. Additionally, 54 percent gave him a grade of "A" or "B" in February 2009 compared to only 37 percent in January 2010.
Despite these lower grades, and the troubles that have continued to plague the U.S. housing market, the survey found that the "American Dream" of homeownership continues to be alive and well with more than three out of four Americans considering owning a home as a part of achieving their personal American dream.
Democrats and Republicans agree on the areas President Obama needs to focus on in 2010 to stabilize the U.S. real estate market. Creating jobs and job security continues to be at the top of the list with 62 percent of adults referencing it as a key priority for the President.
With foreclosures reaching record levels in 2009 and expected to grow even more this year, it's not surprising that 45 percent of adults included this as an important area of focus. Rounding out the top three priorities for President Obama is bringing/keeping low interest rates at 39 percent. Only 27 percent of Americans surveyed believe extending the home buying tax credit through the end of 2010 should be a key initiative to help stabilize the housing market.
Thursday, March 5, 2009
Obama administration launches housing plan
The Obama administration kicked off a new program Wednesday that's designed to help up to 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.
The Treasury Department released detailed guidelines designed to let the lending industry know how to enroll borrowers in the program announced last month.
"It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets," Treasury Secretary Timothy Geithner said in a statement.
The administration, launching what it calls the "Making Home Affordable" initiative, said that borrowers will have to provide their most recent tax return and two pay stubs, as well as an "affidavit of financial hardship" to qualify for the $75 billion loan modification program, which runs through 2012.
Borrowers are only allowed to have their loans modified once, and the program only applies for loans made on Jan. 1 2009 or earlier. Up to 4 million borrowers are expected to qualify. Mortgages for single-family properties that are worth more than $729,750 are excluded.
Separately, up to 5 million borrowers who have mortgages held by government controlled mortgage finance giants Fannie Mae and Freddie Mac should be eligible to refinance through June 2010.
Meanwhile action to put in place another part of Obama's housing plan is expected soon on Capitol Hill.
House Democrats, under pressure from a group of moderates in their ranks and the banking lobby, agreed Tuesday to narrow legislation that gives bankruptcy judges the power to force lenders to lower the mortgage interest rate or principal balance.
Under the terms of the agreement, judges would have to consider whether a homeowner had been offered a reasonable deal by the bank to rework his or her home loan before seeking help in bankruptcy court. Borrowers also would have a responsibility to prove that they tried to modify their mortgages.
The compromise legislation was expected to come to a vote in the House as early as Thursday.
Friday, February 20, 2009
American Recovery and Reinvestment Act Summary
The American Recovery and Reinvestment Act of 2009, H.R. 1, has passed the
House and Senate and awaiting the President’s signature. The details of the
legislation are still being finalized. A number of provisions that are important to
Realtors® are expected to be included in the legislation:
Homebuyer Tax Credit – An $8,000 tax credit that will be available for qualified
purchase of a principal residence by a first time homebuyer between January 1,
2009 and September 1, 2009. The credit does not require repayment.
Individuals who purchase in 2009 using financing assistance from state and local
mortgage bonds will be permitted to use the credit, as well.
Federal Housing Agency (FHA), Fannie Mae and Freddie Mac Revised Loan
Limits – Specifics have not been released but reports indicate that the 2008
limits have been reinstated for 2009 except in those communities where the 2009
limits are higher. Additional increases in individual communities may also be
available at the discretion of the Housing and Urban Development (HUD)
Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states
and local communities to be used for neighborhood stabilization activities for the
redevelopment of abandoned and foreclosed homes are authorized.
These elements of the American Recovery and Reinvestment Act of 2009 are the
pillars of the National Association of Realtors® (NAR) Housing Stimulus Plan
presented to the 111th Congress. NAR will continue to work closely with the
Department of Treasury and Secretary Timothy Geithner to implement a
mortgage buy-down program. NAR also recommended that the Treasury
Department expand the Term Asset-Backed Loan Facility (TALF) to include
commercial mortgage-backed securities as eligible collateral. The Treasury has
approved this recommendation and this will encourage investment in the
commercial real estate market.
Additional housing and other provisions of interest to Realtors®:
Rural Housing Service - Increased funding for the Rural Housing Service direct
and guaranteed loan programs.
Low Income Housing Grants - Allow states to trade in a portion of their 2009
low-income housing tax credits for Treasury grants to finance the construction or
acquisition and rehabilitation of low-income housing, including those with or
without tax credit allocations.
Tax Exempt Housing Bonds - Tax-exempt interest earned on specified state
and local bonds issued during 2009 and 2010 will not be subject to the
Alternative Minimum Tax (AMT). In addition, financial institutions will have
greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing - Grants for energy retrofits for federally assisted
housing (section 8), funding for Energy Efficiency & Conservation Block Grants to
states, and increases in the residential tax credit through 2010 for certain energy
efficient upgrades.
Transportation - Spending for upgrades and repairs of road, bridges and transit
facilities.
Broadband Deployment – Grants to make broadband available in un-served
communities
NAR’s work with Congress and the Treasury Department is not yet completed.
As the leading advocate for homeowners and the real estate industry, NAR will
continue to address the issues facing Americans who are trying to purchase a
new home, protect their current home or preserve investment opportunities in
residential and commercial properties. NAR recognizes that without a housing
recovery, an overall economic recovery is impossible.
Source: NAR
House and Senate and awaiting the President’s signature. The details of the
legislation are still being finalized. A number of provisions that are important to
Realtors® are expected to be included in the legislation:
Homebuyer Tax Credit – An $8,000 tax credit that will be available for qualified
purchase of a principal residence by a first time homebuyer between January 1,
2009 and September 1, 2009. The credit does not require repayment.
Individuals who purchase in 2009 using financing assistance from state and local
mortgage bonds will be permitted to use the credit, as well.
Federal Housing Agency (FHA), Fannie Mae and Freddie Mac Revised Loan
Limits – Specifics have not been released but reports indicate that the 2008
limits have been reinstated for 2009 except in those communities where the 2009
limits are higher. Additional increases in individual communities may also be
available at the discretion of the Housing and Urban Development (HUD)
Secretary.
Foreclosure Mitigation & Neighborhood Stabilization – Funding for states
and local communities to be used for neighborhood stabilization activities for the
redevelopment of abandoned and foreclosed homes are authorized.
These elements of the American Recovery and Reinvestment Act of 2009 are the
pillars of the National Association of Realtors® (NAR) Housing Stimulus Plan
presented to the 111th Congress. NAR will continue to work closely with the
Department of Treasury and Secretary Timothy Geithner to implement a
mortgage buy-down program. NAR also recommended that the Treasury
Department expand the Term Asset-Backed Loan Facility (TALF) to include
commercial mortgage-backed securities as eligible collateral. The Treasury has
approved this recommendation and this will encourage investment in the
commercial real estate market.
Additional housing and other provisions of interest to Realtors®:
Rural Housing Service - Increased funding for the Rural Housing Service direct
and guaranteed loan programs.
Low Income Housing Grants - Allow states to trade in a portion of their 2009
low-income housing tax credits for Treasury grants to finance the construction or
acquisition and rehabilitation of low-income housing, including those with or
without tax credit allocations.
Tax Exempt Housing Bonds - Tax-exempt interest earned on specified state
and local bonds issued during 2009 and 2010 will not be subject to the
Alternative Minimum Tax (AMT). In addition, financial institutions will have
greater capacity to purchase tax-exempt state and local bonds.
Energy Efficient Housing - Grants for energy retrofits for federally assisted
housing (section 8), funding for Energy Efficiency & Conservation Block Grants to
states, and increases in the residential tax credit through 2010 for certain energy
efficient upgrades.
Transportation - Spending for upgrades and repairs of road, bridges and transit
facilities.
Broadband Deployment – Grants to make broadband available in un-served
communities
NAR’s work with Congress and the Treasury Department is not yet completed.
As the leading advocate for homeowners and the real estate industry, NAR will
continue to address the issues facing Americans who are trying to purchase a
new home, protect their current home or preserve investment opportunities in
residential and commercial properties. NAR recognizes that without a housing
recovery, an overall economic recovery is impossible.
Source: NAR
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