President Signs Housing Recovery Bill

Here are the details on the bill, I think this is going to be a positive for the Louisville market……

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).
    View new 2009 FHA and GSE loan limits (PDF)
  • 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).
    New 2009 FHA and GSE loan limits (PDF)
    FHA Reform Chart (PDF)
  • 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.
    FHA Foreclosure Rescue Chart
  • 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.
  • 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.

Last Weeks Stats



LISTINGS   Residential (Single Family & Condo)
July 21 – July 27, 2008 638
Last year 728
July 13 – July 19, 2008 210
Last year 327


Interest Rate Update

If your mortgage broker is telling you that rates have gotten worse, they’re right.  We actually touched the worst point of the year earlier this week.  I thought last week that the end of July/beginning of August would either mark the beginning of a slow improvement for rates or the precipitous falling to worst levels of the year.  It wasn’t really that sensational of an assumption as the markets have tended to do the same thing a majority of the time in the past.  I’m hoping that we’re closing in on the bottom and will start seeing some slow improvements. Today, you’re pretty much looking to be right around 6.625% on a 30 year fixed assuming the best of the best scenarios. 

Here are current rates: *NO POINTS CHARGED

30 year fixed* 6.625%20 year fixed* 6.5%

15 year fixed* 6.25%

30 year fixed Jumbo* 7.5%

I never charge points, broker fees and origination fees. A $495 processing fee is all I charge………….Keeping closing cost as low as possible is my goal.

 Courtesy of:

Kurt S. Ehret

ELM Financial Services, llc

Mortgage Solutions

2301 Hurstbourne Village Dr. #600

Louisville, KY 40299

502-671-0408 ext. 222

502-671-0406 (fax)



Lisiting & Sale Stats



LISTINGS   Residential (Single Family & Condo)
July 14 – July 20, 2008 632
Last year 775
July 6 – July 12, 2008 199



LISTINGS   Residential (Single Family & Condo)
July 7 – July 13, 2008 676
Last year 754
June 29 – July 5, 2008 274
Last year 405



LISTINGS   Residential (Single Family & Condo)
June 30 – July 6, 2008 617
Last year 665
June 22 – 29, 2008 292
Last year 398


Last Weeks Stats



LISTINGS   Residential (Single Family & Condo)
June 23 – 29, 2008 610
Last year 815
June 15 – 21, 2008 256
Last year 331