Down payment assistance to risky borrowers $300B Housing Rescue Plan Passes

Commentary By Anthony Landaeta Jr
Posted 06/24/07 http://anthonylandaeta.blogspot.com/

Why would the Government offer loans and down payment assistance to risky borrowers after the collapse of the banking industry, isn't that what got us into too this mess in the first place with 100% financing and adjustable rates. The Government not only what's us to bail out the Bank's that created this mess but they also want to provide $14.5 Billion in a array of Tax Breaks, including a credit of up to $8,000 for first-time homebuyers who buy in the next year. $8,000 Dollars is a lot of money, so if a borrower wants to purchase a home at $265,000 through the Federal Housing Administration (FHA/HUD) there are purchasing that home with no money down which would be 100% financing, FHA requires as much as 3% in down payment so we as tax payers get to help those folks purchase there Dream Home's without any savings. "This is the government at there best" leading the charge Christopher J. Dodd, D-Conn, Rep Pelosi, Nancy D-CA with a set of weak Republicans that have no backbone with low approval ratings.

At the Capitol statement by Sen. Christopher J. Dodd, D-Conn., the Banking Committee chairman, said the lending measure "would allow us to begin to put a tourniquet on the hemorrhaging of foreclosures in this country."
Dictionary meaning:

Tourniquet: Bandied Quick fix
Hemorrhaging: To lose (assets): a company that was hemorrhaging money.

Members of the Congressional Black Caucus call it unacceptable, arguing it doesn't do enough to address the needs of black Americans. (My be we should just give everyone homes for free)
"Owning a home is not a right, it has to be earned"

There estimated 400,000 distressed borrowers who otherwise would be considered too financially risky to qualify for government-insured, fixed-rate loans. The Government will aid these borrowers by allowing them to refinance there home into a FHA loan where the Government will share in the portion of any profits they make from selling or refinancing their properties in the future. " Your Tax dollars work "

This is why we need checks and balances on our government having a equal Balance of independent - Democrat - Republican senators will help to ensure bills like this won't go anywhere lets hope President Bush Veto's this bill we all know a President Obama would sign this Bill, and we all know this election belongs to Obama he will be the next President, with that said a Democratic House and Senate with a Democratic President only means a large creation of Government Programs with High Taxes for the next 4 to 8 years, so hold on to your wallets because there is a lot of needy people with there hands out that the democrats have to Feed.
Anthony Landaeta Jr

MBA: HUD and Federal Reserve Must Work Together on RESPA Reform

As a critical comment period for proposed reform to the Real Estate Settlement and Procedures Act by the U.S. Department of Housing and Urban Development expires today, the Mortgage Bankers Association on Thursday weighed in with a stern warning for HUD officials: work with the Fed on updating the Truth in Lending Act in conjunction with RESPA, or risk hopelessly bungling both.
MBA president and CEO Jonathan L. Kempner said that while the trade organization “applauded” HUD for its effort to re-define RESPA criteria, updating the Act needed to be part of a larger effort to simplify the overall origination process for consumers.
“Recent events demonstrate that borrowers also need additional clarity about the terms and cost of credit,which falls under the Fed’s responsibility under TILA,” said Kempner. “For that reason, we strongly believe that HUD should link its efforts with the Board of Governors of the Federal Reserve so that both agencies work together in a careful, coordinated and comprehensive manner to truly simplify and improve the mortgage process for consumers.”
Specifically, the MBA said it wants to see HUD and Fed officials produce a combined TILA and good-faith-estimate (GFE) form to replace current disclosures given to borrowers.
Related links:
read the MBA’s full letter to HUD
“The Board has already issued proposed new rules under TILA and the Home Ownership and Equity Protection Act (HOEPA) concerning the mortgage market generally and is expected tosoon embark on further reform efforts concerning TILA disclosures specifically,” wrote Kempner in a letter to HUD officials.
“HUD’s efforts should be linked to the Board’s efforts.”
While the MBA is pushing for a collaborative reform approach, HUD’s efforts to reform RESPA have come under much stronger fire from the National Association of Realtors and the American Land Title Association.
“We believe that RESPA reform cannot be resolved in one sweeping change without considering and appreciating the many moving parts of a residential real estate transaction,” ALTA president Gary Kermott said in testimony during a recent hearing at the House Committee on Small Business.
Among ALTA’s concerns are changes to RESPA procedures that it argues will result in more confusion, red tape and cost for people both buying and selling a home.
Kermott pointed to the imposition of responsibility on the closing agent to read and interpret the closing script on behalf of the borrowers as one such example of unneeded red tape, which he said “will increase costs for both sellers and borrowers.”
Adam Cockey Jr., chair of the NAR Real Estate Services Forum, argued in testimony to the same House panel that the current reform proposal “tips the balance in favor of the largest financial industry players, opens the door to legal challenges, and does little if anything to benefit consumers.”
The NAR has called for the RESPA reform proposal to be withdrawn altogether.

MBA Issues Formal Comments On HUD's RESPA Proposal

The Mortgage Bankers Association (MBA) has released its formal comments in response to the Department of Housing and Urban Development's (HUD) proposed rule to amend Regulation X, its Real Estate Settlement Procedures Act (RESPA) regulations. In the letter, MBA President and CEO Jonathan L. Kempner urged HUD to coordinate its RESPA reform efforts with the Federal Reserve's work to improve clarity about the terms and cost of credit under the Truth in Lending Act (TILA)."MBA applauds HUD's RESPA reform efforts and believes RESPA reform has the potential to greatly improve disclosures to consumers concerning their closing costs," says Kempner. "Recent events demonstrate that borrowers also need additional clarity about the terms and cost of credit, which falls under the Fed's responsibility under TILA. For that reason, we strongly believe that HUD should link its efforts with the Board of Governors of the Federal Reserve so that both agencies work together in a careful, coordinated and comprehensive manner to truly simplify and improve the mortgage process for consumers."Specifically, MBA's comments call on HUD and the Fed to work together to produce a combined TILA and Good Faith Estimate (GFE) form and implement it at the same time to replace the current RESPA and TILA disclosures that are provided to borrowers at the time of application. MBA and its members have developed a proposed combined form, as well as a comparable revised HUD-1, which MBA included with its comment letter.In its letter, MBA also states that it would support complementary statutory changes that would truly simplify and improve the mortgage process.

Source: Mortgage Bankers Association