Courtesy of Ray Smith - Home National Mortgage

Here is a snapshot analysis on the current state of extending the first time homebuyer tax credit.

Relevant Legislation In the House:

H.R.3761 : To amend the Internal Revenue Code of 1986 to extend the first-time homebuyer tax credit, and for other purposes.
Sponsor: Rep Biggert, Judy [IL-13] (introduced 10/8/2009) Cosponsors (12)
Committees: House Ways and Means; House Appropriations
Latest Major Action: 10/8/2009 Referred to House committee. Status: Referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

H.R.3773 : To amend the Internal Revenue Code of 1986 to extend the first-time homebuyer tax credit, and for other purposes.
Sponsor: Rep Edwards, Donna F. [MD-4] (introduced 10/8/2009) Cosponsors (5)
Committees: House Ways and Means
Latest Major Action: 10/8/2009 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

The house ways and means committee will also be holding a hearing on the tax credit next Thursday (http://waysandmeans.house.gov/hearings.asp?formmode=view&id=8096). They will be discussing the success of the program thusfar, possible fraud as a result of the program and the possibility of extending it.

BOTTOM LINE: Speaker Pelosi has publicly stated that she wants to see the tax credit extended but I do not see her as a co-sponsor for the legislation formulated in the house. I will keep a close watch on the house ways and means committee meeting next week to see what the tone of the committee is. As of right now, there is a long way to go because all bills are still being discussed in committee and have not been taken to the floor for a vote.

Relevant Legislation In the Senate:

37. S.1678 : A bill to amend the Internal Revenue Code of 1986 to extend the first-time homebuyer tax credit, and for other purposes.
Sponsor: Sen Cardin, Benjamin L. [MD] (introduced 9/16/2009) Cosponsors (11)
Committees: Senate Finance
Latest Major Action: 9/16/2009 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

This article was published hours ago http://www.google.com/hostednews/ap/article/ALeqM5guZ2uxoyv-PmSFsGGANQP8oGSqmAD9BBOFUO2. To summarize, it looks like the tax credit, which is being pushed by the Obama Administration, is being pursued much more aggressively in the Senate than it is in the house. Speaker Harry Reid and Senator Dodd, Chairman of the Banking Committee are both backing a bill to extend the credit. This is important as it will allow the bill to get pushed through committee faster unto the floor for a vote.

OVERALL ANALYSIS: It appears that the most powerful members of each chamber are fully backing a tax credit and that legislation is in the works. However, it is still in committee at the present time and not ready to vote in either Chamber. It is a good sign that the major players are attempting to push it through.

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Ray Smith Home National Mortgage Address: 1000 North Prince St., Lancaster, PA, 17603 Office Phone: (717) 538-0354 Cell Phone: (717) 538-0354 http://www.mortgagemanray.com