July 31, 2008

The passage of The Housing and Economic Recovery Act of 2008 by the House of Representatives will help stabilize the local and national housing markets and slow the rising rate of foreclosures. Important components of the bill are:

• Reform of the government-sponsored enterprises (Fannie Mae and Freddie Mac)
• Permanent increases to both GSE and FHA loan limits
• A $7,500 first-time home buyer tax credit
• A program to expand FHA that would allow more homeowners to refinance their mortgages
• Down payment assistance paid by sellers will end October 1, 2008.

Other major features of the housing package legislation includes Federal Housing Administration Modernization, that will simplify and make FHA- backed mortgages more available while helping thousands of families refinance existing mortgages and in turn, keep their homes.

We are pleased that the president has signed this bill into law.

Nick Kremydas, CEO