Well, the housing bill has been signed. Don't we all feel better now? Here is a link to a story about it;
I wish I could really find something in this that I really and truly feel will turn the current market around. Unfortunately I don't. What the bill does is give Fannie and Freddie some wiggle room....and more government control. I just can't believe that is a good thing. The term "new, more stringent regulator" just doesn't set my heart aflutter. The phrase "The Federal Housing Administration will begin to implement new policies intended to keep more deserving American families in their homes" only means in many cases a deferment of the inevitable. Keeping people in their homes who can't afford them now by putting a band aid out there for them, which I believe only stalls the eventual reality that they CAN'T afford it and will default again, and we just delay the foreclosure, further lengthening the timeframe of the cycle we are in.
The "Home buyer credit" is something of interest, but as explained has to be paid back. What a deal! Grants to states to buy foreclosed properties...how many real estate people and mortgage people do you think will be involved in that process? If you guess "none" you would probably be pretty accurate. I just really don't find much here to get too excited about. The loan limits have already been in place. There will no longer be Down Payment Assistance programs available for the FHA. The only Down Payment Assistance now will come from government funded programs. Guidelines will continue to be very tight, if not tighter. I don't see a "bang" that will draw people out to buy homes. Nothing that makes you want to shout in an advertisement "The Housing Bill has passed! Come right out and buy one!"
I am really not trying to be negative...only realistic. I am nearly always optimistic and consider the glass half full rather than half empty and still do. But I do grow weary of the bouncing ball of politics and what seems to be an endless stream of much ado about nothing when it comes to what our elected officials do. What I see is more taxpayer money being spent that really does not help the industry we are in.
I would truly love to hear comments on this. I am saddened by the recent blogs of closing offices, both in the real estate and mortgage businesses. I wish this bill would be in instrument to turn things around and prevent this trend. But I just don't see it as being that. What do you think?