The News Review:
- Washington’s housing fix taking shape – Apr. 2, 2008
- US Military Stretched Thin by Wars; Foreclosure Crisis Affecting the…
- First Direct and Co-op withdraw mortgage deals
- Progress of Bush administration’s Hope Now questioned as foreclosu…
Washington’s housing fix taking shape – Apr. 2, 2008
cnn.com – Apr 2, 2008
com) — The Senate began debate Thursday on a $15 billion bipartisan housing relief package that could get a final vote by next week. The legislation was crafted Wednesday by Democratic and Republican lawmakers facing election-year pressure to fast-track a response to the foreclosure crisis. The package has gotten praise from the mortgage industry, but housing advocates say it only offers homeowners modest help and is too generous to homebuilders. The proposed measures include funding to help borrowers refinance unaffordable loans and help boost activity in neighborhoods with properties in foreclosure. Also in the bill is a. The package also contains measures to make loans that are insured by the Federal Housing Administration – which helps borrowers with weak credit or little or no cash for a downpayment – more accessible… The Senate package also calls for FHA loan down payment requirements be raised to 3. Help for troubled borrowers trying to refinance: The bill lets states offer $10 billion in tax-free municipal bonds, the proceeds of which would be used to subsidize mortgage refinancing for subprime borrowers trying to get out of unaffordable loans. Under current law, state and local housing agencies are allowed to issue tax-free bonds only to help subsidize mortgages for first-time homebuyers, or those purchasing property in distressed areas. Tax credits for buying troubled properties: The bill creates a tax credit of $7,000 for homebuyers who buy foreclosed homes or homes where the current owner is in default. New property tax deduction: For the 28. 3 million homeowners who take the standard deduction on their federal tax return, the bill would allow them to take a second standard deduction for the property tax they pay.
US Military Stretched Thin by Wars; Foreclosure Crisis Affecting the…
CNN International – Apr 2, 2008
DEBBIE STABENOW (D), MICHIGAN: Families who are seeing their life’s dream, their home being lost as a result of this crisis. SYLVESTER: A bipartisan plan is in the works in the Senate. It could let states offer $10 billion in mortgage revenue bonds to subsidize mortgage refinancing, overhaul the federal government’s loan insurance program, offer tax breaks for people to purchase foreclosed homes, and tax incentives for home builders. But skeptics say these are only small steps. GUS FAUCHER, MOODY’S ECONOMY: The government may need to step in at some point and say either we’re going to buy up some of these mortgages or we’re going to help homeowners refinance through the FHA and guarantee those loans and to be honest with you, I think it’s going to take some big step like that in order to really solve the problem. SYLVESTER: The Bush administration and some Congressional members have resisted proposals like that. (END VIDEOTAPE) SYLVESTER: Democrats point out the federal government was quick to act to save Wall Street’s Bear Stearns from declaring bankruptcy.
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First Direct and Co-op withdraw mortgage deals
International Herald Tribune – Apr 2, 2008
Both retreats are expected to be temporary, but are a further blow for millions of home owners who will need to refinance mortgages this year, as thousands of cheaper mortgage offers have already been withdrawn. It comes as mortgage approvals languished near decade lows in February, according to Bank of England data. “These are really strange times, I don't think the mortgage industry has ever witnessed anything like this,” said Andrew Hagger, a spokesman for Moneyfacts, which provides online comparisons data on mortgages. Independent broker Savills Private Finance expects lenders to raise mortgage rates further in coming months to deter consumers, because their own access to funds is restricted. Today in Business with Reuters.
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Progress of Bush administration’s Hope Now questioned as foreclosu…
International Herald Tribune – Apr 2, 2008
The Federal Reserve's recent interest rate cuts have resulted in fewer payments jumping that much, shrinking the pool of qualifying borrowers even more. Given these snags, homeowners like Deb Westfield have found little hope. Westfield, 37, and her husband, who live outside Minneapolis, have been unable to negotiate a modification or refinance their 30-year fixed-rate mortgage, taken out in fall 2006 at rate of 9 percent — much higher than prevailing rates at the time. Like many borrowers, they pulled equity out of their home to pay off other debts. With penalties, their mortgage has grown to more than $400,000 (€255,885), on a house they bought for $290,000 in 2003. Westfield regrets refinancing with a lender who, she says, initially promised an interest rate of around 7. 5 percent and raised it to 9 percent at the last minute.