BUSH SIGNS BILL

National Association of REALTORS®
Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)

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H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

Foreclosure Relief Comes To Washington

An article in Realty Times that hopefully will be of value to those in need:


LEARN ABOUT NACA

The system is at least working for some!

PHOENIX & EAST VALLEY SALES & LISTINGS

The latest report for the Southeast Phoenix Valley and Greater Phoenix markets provided courtesy of First American Title.

Please use the BACK arrow to return to this Blog after viewing the data:

MLS INVENTORY - 07/23 - SOUTHEAST VALLEY

Departing from the previous format, during the last 2 weeks Listings up 81, Pending up 53 and Sales down 99. With Active and Pending at 21079 total and divided by sales of gives us 9.8 months of inventory. Based on Active only, that would be 8.3 months.

Again, under a new format, Total Phoenix Area MLS Actives, during the last 2 weeks, up by 308, Pending by 173 and Sold down by 79. This is 11 months inventory, but based on Sales only it is 9.4 months.

MLS INVENTORY - 07/23 - TOTAL VALLEY


Prices continue to decline, driven mostly by sale of REO (Bank owned) properties and Short Sales.

As stated before, it is predicted that the Valley will double in population in 20 years. Good time to buy - I think so!

On a short term time line, the President will likely sign the Mortgage Relief package from Congress, which should help the economy begin to turn upward. Not a total solution, but hopefully will help folks to become a little more positive about tomorrow.

PHOENIX & EAST VALLEY SALES & LISTINGS

The latest "last 30 day" report for the Southeast Phoenix Valley and Greater Phoenix markets provided courtesy of First American Title.

Please use the BACK arrow to return to this Blog after viewing the data:

MLS INVENTORY - 07/08 - SOUTHEAST VALLEY

The number of listings (active and pending) in the SOUTHEAST VALLEY went down by 733 from 2 weeks ago, new contracts in escrow were 466 of those. Sales were up by 52 (2.4%). Summer months are not when a lot of folks are out looking, most make there move earlier to close before schools reopen.

With the total listings at 20964 and SALES at 2252, we now have 9.3 months of inventory in the pipeline for the South East Valley.

Phoenix data is compared to a report of 5 weeks ago.

Results for the total Phoenix MLS area showed the listings decreased by 470 to 60926, while contracts and sales both increased (by 54 and 34 respectively.

We now have 10.7 months of inventory in the Phoenix MLS pipeline.

MLS INVENTORY - 07/08 - TOTAL VALLEY


Prices continue to decline, driven mostly by sale of REPO (Bank owned) properties and Short Sales. Where it will end is anybody's guess, but it is predicted that the Valley will double in population in 20 years. Eventually, the market will begin to turn - we are the nations leader in employment increases which will begin to attract new folks from areas not so fortunate.

FIND THE LOWEST GAS PRICES BY ZIP

ENTER YOUR ZIP CODE FOR BEST PRICES

Also gives you an estimate of the value of your car(s).

MOLD AND RADON

A recent edition of Realty Times includes an excellent response to questions relating to Mold and Radon. The author of "Ask Realty Times", Peter G. Miller, has given us a clear and concise guideline as it relates to these subjects:

MOLD AND RADON

Be sure to click on and read The Environmental Protection Agency and The New York Times articles referred to by Mr. Miller in his article.

You may also wish to pursue the matter in more depth by obtaining a copy of Leonard Cole's book, Element of Risk, The Politics of Radon.

Our thanks to Mr. Miller for some long overdue guidance.

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City of Phoenix Foreclosure Assistance

A new resource for those facing foreclosure:

New City of Phoenix Website - Foreclosure Help

The City of Phoenix is working actively to address the challenges posed by the foreclosure crisis. Their Web page features an array of resources to help you deal with a foreclosure situation whether you are a homeowner, a concerned resident or a prospective homebuyer.

Many Metros to See No Job Growth

An article from Realty Times:

No Job Growth as Mortgage Crisis Worsens

And if you don't read the article, you will miss this nugget:

"Peak-to-peak employment gains (the difference between the current job level peak and the employment peak prior to the 2001 recession) were led by Phoenix at 307,100 jobs; Houston at 298,300; Washington at 289,400; Riverside at 233,800; and Miami at 220,600."

Hey, we must be doing something right!

A dozen ways to get a down payment

An article By Marcie Geffner in Bankrate.com:

"The chief advantage of a down payment today is simply the ability to qualify for a loan, since only a handful of so-called "zero-down" loan programs still exist. Yet down payments have other benefits, too".

Get a Down Payment

Several good suggestions, many obvious, but a few new ones as well.


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Real Estate Outlook: Resales Up, Rate Dip

An article from Realty Times.com:

"Take the latest home resale report: Sales were up by 2 percent nationally in May, and up 5.5 in the Midwest and 4.6 percent in the Northeast".

Real Estate Outlook

That's the good news - now read the rest of the article.

Ah, for the good old days of 2005.

Good old days? But 2005 was only 3 very loooooooong years ago!

Helping Homeowners Keep Their Home

If you or a family member, a co-worker, a friend, or a neighbor behind on payments, make sure you or they read the following:

*Don't ignore the letters from your lender
*Contact your lender immediately
*Contact a HUD-approved Housing Counseling Agency
*Toll FREE (800) 569-4287
*TTY (800) 877-8339

And most important, visit the following website:

Helping Homeowners Keep Their Home

FHA has relaxed many former requirements to get the home lending process in a healing process. It is there for you to use!

PHOENIX & EAST VALLEY SALES & LISTINGS

The latest "last 30 day" report for the Southeast Phoenix Valley and Greater Phoenix markets provided courtesy of First American Title.

Please use the BACK arrow to return to this Blog after viewing the data:

MLS INVENTORY - 06/25 - SOUTHEAST VALLEY

The number of listings in the SOUTHEAST VALLEY went down by only 20 from 3 weeks ago, new contracts in escrow up by 183 but sales were down by 83 (3.6%).

With the ACTIVE listings at 18174 and SALES at 2200, we now have 8.72 months of inventory in the pipeline for the South East Valley.

In the past week I have noted increased activity in both my own office and in the title companies I have visited. Is it a trend in the making or just a blip on the radar screen. We should know more by the next report from 1st American Title.


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I will report of Greater Phoenix in the next report.

Gas Prices Fuel Urban Desire

Again, Courtesy of the Realty Times, a good article from Broderick Perkins, founder and editor of the The DeadlineNews Group.


Gasoline ... is affecting your choice on where to live!

Locally, some of our extremely distant communities are feeling a major pinch on home sales - Johnson Ranch and Maricopa being prime examples.