It looks as though congress is actually listening. Three Congressmen and one Congresswoman have at least heard enough to present bill H.R. 6694 which would reinstate down payment assistance programs as changed in H.R.3221. We hope all senators and the president understand the importance of making these specific changes as soon as possible. In my previous blog and letter I explained that most of the problems in the mortgage market have been rectified. The elimination of many ridiculous underwriting standards, such as no income verification loans, have almost all been terminated. The only problem that still exists now are the people left with some of these mortgage, which the bill will support tremendously and the continued decline in housing prices. This change will at least provide some type of stabilization in the housing industry and provide some buyers the help they need to get started, as well as those trying to refinance or sell thier homes. The increased credit score requirements, the lowering of debt to income ratios, and the tougher appraisal reviews will help protect new borrowers and lenders in providing mortgages. At least now we can begin to breathe a sigh of relief if this new proposed bill passes.

Sincerely,

RonGiannamore@ToMortgageServices.com