I am sure many of you are anxiously awaiting the Omnibus Housing Bill that recently passed through the house.   Hopefully it will soon be passed by the Senate, and then signed off by the President.    Here is what I have been hearing about the bill and how it can help get this market moving again.

-- Raises loan limit for lenders to 115% of the local area median home price, up to $625,000
 
-- Raises limit on seniors' reverse-mortgage program to $625,000

-- Cap reverse mortgage origination fee at 1.5%
 
-- New regulator for Fannie and Freddie, financed by the two firms

-- Terminating seller funded DPA (Nehemiah, Ameridream, etc.) on 10/1/08

-- Placing a moratorium on risk based pricing (MIP) effective 10/1/08

-- No change to FHA broker eligibility

-- FHA will streamline condo project approval process

-- FHA minimum cash investment 3.5% - will be easier to calculate though
 
-- The bill also authorizes the Treasury secretary to expand credit and buy equity shares in Fannie or Freddie if necessary. The    Congressional Budget Office estimates this would cost an extra $25 billion if it happened.

-- Raises limit on federal debt to $10.6 trillion, from $9.8 trillion
 
-- Fund to provide more low-income housing: $5.3 billion
 
-- Tax credits for first-time home buyers: $4.6 billion
 
-- Grants for state and local governments to buy foreclosed homes: $3.9 billion
 
-- FHA insurance for up to $300 billion of home loans: $729 million
 
-- Counseling for homeowners facing foreclosure: $210 million
 
-- Loosens restrictions on how states issue tax-exempt housing bonds
 
-- Keeps lenders from foreclosing or increasing mortgage interest on returning troops for a year. Creates financial-counseling program, increases home-loan limit for military veterans: $112 million

Tim Marose

www.tmmortgagegroup.com