Funny, I Don't Feel Stimulated...What About You?

Mortgage and Lending with Brand Mortgage Group

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 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?

Comments (6)

John Guiney
Keller Williams Realty - Quincy, MA

The reality is that until Americans learn to save some of what they earn, we will have to endure the repercussions. We are now seeing that there is no money for auto leases, car loans, student loans etc. We are behaving as individuals now like the Bush Administration and spending our future.

Jul 30, 2008 02:13 AM
Charlie Ragonesi - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Merlin , I too do not like a lot of what is in this bill. But if you live in a boarded up neighborhood some one coming in and buying the foreclosed properties is a blessing. Also the 3.5 FHA not coming from the seller was really coming from the lender in many cases as the seller just bumped up his price to give the "gift". On the other hand bailing out freddie and fannie is wher I have my problems. Let them get government loans. They screwed up why should I pay ?


Jul 30, 2008 02:15 AM
Cameron Bagherpour
Zeus Construction - Medway, MA
Construction. Development. Investment.

The two things that concern me about this bill are that under this new law, mortgage professionals must be fingerprinted and now all credit card transactions will be reported to the IRS.  You can't tell me that either of those provisions would have prevented this situation or going forward will prevent another one.

It's all about a slow surrender of our rights.  Starting with the Patriot Act, we've had laws passed that have hidden provisions to limit and curtain our rights and freedoms.

We need to take our government back.

Jul 30, 2008 02:18 AM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Merlin, If the bill changes the public perception and boost the home buyer process maybe that is all we will get from it. There are great deals out there and buyers that should be buying but have to date been holding back, so if this opens the flood gates great. At best it creates a trickle down theory (which the government is famous for), a few more buyers will mean a few sellers looking to purchase elsewhere and those new sellers will be looking to up-date, down scale move on Etc.. lets hope it spurs some renewed activity. Steve

Jul 30, 2008 02:18 AM
Gerri Weits, PA
Commercial Realty Team - North Palm Beach, FL

Simple fix:  Vote for Ron Paul for President in 2008.  He's our only hope, and the only patriot with the courage to stand up and speak the truth!

Jul 30, 2008 02:18 AM
Ralph Nudi
Success Realtors brokered by eXp Realty - Kenosha, WI
"YOUR success IS our success"

This bill is garbage, I cannot believe the president signed it.

Jul 30, 2008 02:34 AM