Rural Housing Preservation and Stabilization Act of 2010
Yesterday April 27th, 2010, the U.S. House of Representatives passed the Rural Housing Preservation and Stabilization Act of 2010 (H.R. 5017) by a vote of 352-62 to ensure that families in rural communities continue to have access to much-needed affordable mortgages at no cost to the taxpayers. Through this legislation, the guarantee fee in the USDA Guaranteed Rural Housing (GRH) Program may be raised to offset any need for Congressional appropriations. H.R. 5017 would raise the cap on the amount of the annual premium that is charged to borrowers under the single-family loan guarantee program run by the Department of Agriculture's Rural Housing Service (RHS). Additionally, H.R. 5017 would authorize USDA Rural Development to guarantee up to $30 billion in loans in Fiscal Year 2010. This would represent an additional $18 billion in loan making authority for the remainder of the 2010 fiscal year.
Before these changes can be implemented, similar legislative action will need to occur in the U.S. Senate.
Following this action in the House, the USDA Rural Development National Office sent an announcement that stated: "Depending upon Congressional activity with the proposed legislation it is possible that the Agency may consider issuing Conditional Commitments."
There has been a significant increase in demand for these loans as a result of the economic crisis over the past two years. The number of rural home loans has tripled since 2006, while federal funding has failed to keep up with the growth of the program. As a result, the program is expected to run out of funding within days. Last week the program exhausted over $496 million dollars in funding, leaving an average of 2.3 weeks of funds remaining. This bill would make the program self-funded and will cut discretionary spending $24 million in 2010, according to the April 26th Congressional Budget Office Cost Estimate report, if put in place by appropriations.
Please share this information with your staff, as well as all Realtors and builders. We will continue to keep you updated regarding available program funding, in addition to any legislative events pertaining to the USDA GRH Program. In the meantime we encourage all to contact their local Senators and urge that they support the Rural Housing Preservation and Stabilization Act of 2010 (H.R. 5017).
For further information on the USDA Rural Housing Program, please visit our website Jeff Wilmoth | HomeStar Financial Corporation...Serving all of Georgia! 848 Jesse Jewell Parkway Gainesville, GA 30501 Cell 404.597.5662 | EFax 678.623.0444
For further information on the USDA Rural Housing Program, please visit our website
Jeff Wilmoth | HomeStar Financial Corporation...Serving all of Georgia!
848 Jesse Jewell Parkway Gainesville, GA 30501
Cell 404.597.5662 | EFax 678.623.0444
Apply online: www.jeffwilmoth.com
Mortgage Loan Originator NMLS ID: 206798
HomeStar Financial Corporation, a Georgia Corporation, NMLS ID: 70864
Nationally Approved USDA lender USDA GRH program
HUD DE Lender License No. 1897400009