With the foreclosure crisis still causing havoc to the housing market, President George Bush promised to push Congress to act quickly on key legislation. Some of the laws will immediately have an impact. These include making refinancing more affordable and easier for distressed homeowners; and stopping predatory lending.
Of course, not all efforts and proposals will see the light of day. But there are actually several initiatives that might be approved by the White house as early as the first half of 2008.
For starters, a consensus bill on Federal Housing Administration reform will soon be drafted and submitted for signature to the White House. The reform aims to liberalize the lending guidelines, which will effectively lower origination fees, increase caps on loans and lower required down payment.
Another proposal involves the stricter regulation of the Freddie Mac and Fannie Mae and increased conforming loan limits.
These new proposals will be added to the other efforts that are already being implemented. Among them are the tax relief and the Treasury-coordinated “rate-freeze plan”.
The dramatic rise in the number of foreclosure filings has already created many problems for the national government. With threats of a recession looming, the White House must use all its political resources to create legislation that will stop the worsening foreclosure crisis.
In 2006, 1.2 million homes entered some stage of <>foreclosure. Although the number of foreclosure filings in 2007 has yet to be released, many analysts are certain that the number will exceed that of the previous year. And it does not stop here. The looming recession will make it harder for homeowners to meet their mortgage obligations and number of defaults will still be significant. Buyer confidence is at an all time low with the stricter lending guidelines being imposed and potential return on investment does not look good.
For more information on the subprime mortgage market, you can rely on ForeclosureListingsNationWide.com to deliver the most updated news.
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