Today's cloture vote to end the filibuster on the Tax Extenders Bill has failed to pass. The Tax Extenders Bill includes provisions to extend the Home Buyer Tax Credit time to close eligible purchase contracts from June 30 to September 30 and to extend unemployment benefits.
Most reports indicate that this means the end of the efforts to extend the home buyer tax credit.
The flood insurance program extension had also been part of the Tax Extenders Bill. Earlier this week the House separated flood insurance so that flood insurance can be moved forward without the burden of the other provisions in the Tax Extenders bill. Click here see note for June 23 update.
Unemployment insurance, less directly related to housing, is a big part of this bill that will not be passed. With unemployment rising each week, and more devastatingly, long term unemployment a high levels - almost 7 million. The economy needs these families to be able to survive. Indications are that unemployment may be considered with upcoming legislation for small businesses, but it is possible that efforts to extend unemployment insurance coverage will not be continued.
(Update - Lane Bailey in a comment below provided this link to studies about the impact of extended unemployment on job searches.)
Rural Development Guarantee Program is suffering from inaction, as far as I can tell. Local Rural Develoment departments are issuing conditional guarantees, with a higher funding fee. This is in anticipation that Congress will soon refund the Guarantee program, but with higher funding fees.
Some lenders are accepting loans applications for Rural Development loans. We are still, at this time, offering USDA Rural Development home financing under the conditional guarantee.
Congressional inaction on funding Rural Housing and on the Flood Insurance program is unforgiveable. Failure to pass the provision to extend the Home Buyer Tax credit closing date and unemployment insurance period is hurtful for millions.
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Richard Smith
NMLS 184479
Cell: 423-280-0345
Toll Free: 888-474-9920
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American Acceptance Mortgage, Inc
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Email: rsmith@aamonline.com
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FHA, VA, Rural Development, Conventional, Jumbo,
Reverse Mortgages, FHA 203k Renovation
Home financing in Tennessee and Georgia.
www.RichardSmithHomeLoans.com
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Thank you for visiting. This is the professional blog for
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Richard Smith
NMLS# 184479 TN# 40161 GA# 28928
Conventional, FHA, FHA 203k, HUD $100 down purchases, VA, Jumbo VA, Rural Development, Jumbo, FannieMae Homepath, Home Equity Line of Credit (HELOC).
Lending in Chattanooga, Tennessee and Georgia for over 20 years.
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Stearns Lending, Inc
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Cell phone: 423-280-0345 Email: Richard@HomeLoansChattanooga.com
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This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Stearns Lending, Inc.
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Studies have shown that when extensions to unemployment are discontinued, employment begins to rise...