The changes to the bill mainly are that the government will have control of Fannie Mar and Freddie Macs profits, and will earmark about $500 million per year from their profits with a diversion of funds to low income rental housing. Areas hit most, like New Orleans from hurricane Katrina, will receive the first benefits. Many people speculate that Fannie and Freddie will not lobby against this since, they got busted for accounting fraud 1 1/2 years ago, and basically are doing whatever the government says at this point.
Since the foreclosure crisis started, there have been over 1.5 million foreclosures nationwide. FHA has been able to help 200,000 borrowers so far, however out that number, only 3,000 have been delinquent on their mortgage. FHA needs to dig deeper, and loosen their guidelines, so these people can save their homes, and not go into foreclosure. This bill should clear the Senate by Memorial Day, so hopefully President Bush will sign off on this in the next few weeks. With a 28% approval rate, I think he should do something good for once.
Republicans were adamant against the bill because of the cost to taxpayers, however when the democrats stated that they would take the money from Fannie Mae to fund FHA expansion plans, the White House is changing it's tune, in a highly heated election year.
In closing, whatever happens, I expect more and more strict regulation on the mortgage broker industry, with the government slowly getting more and more involved. I would not be surprised if my industry shrinks another 30% until we find a bottom on this market.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น