Well it looks like the Feds have finally made a move that is actually going to have an immediate impact on the economy, especially the housing market.

The Federal Reserve announced yesterday that it would purchase Mortgage-Backed Securities (MBS) from Fannie Mae, Freddie Mac and Ginny Mae for up to $500 billion. The purchases will begin next week when the Fed will buy $100 Billion worth of the securities from primary dealers through a series of competitive auctions. Shortly thereafter, they plan to have selected asset managers begin conducting additional MBS purchases up to the $500 Billion total over the next few quarters.

Tags: FHA, Florida, Interest Rates, mortgages

The U.S. Department of Housing and Urban Development (HUD) announced the new Federal Housing Administration (FHA) mortgage loan limits for single-family homes set to begin January 1, 2009. The change was required under the guidelines set forth in the Housing and Economic Recovery Act of 2008.The Act sets the national conforming mortgage loan limit to a house price index chosen by the new Federal Housing Finance Agency (FHFA). For 2009, the national conforming mortgage loan limit will remain at the current level of $417,000. It also requires that FHA mortgage loan limits to be set at 115% of the median house price in a given area with a floor of 65% and a ceiling of 150% of the national conforming mortgage loan limit.

Tags: FHA, HUD, mortgages

On Saturday, the Senate passed the long awaited housing bill (H.R. 3221-Housing and Economic Act of 2008) which supposedly will offer up to $300 billion in home loans for troubled homeowners and establish a rescue plan for the Government Sponsored Enterprises (GSE’s) - Fannie Mae and Freddie Mac. It is expected to be sent to the President immediately and his aides have indicated he will sign it into law even though it’s costs are far above what where originally anticipated.

The legislation is the centerpiece of Washington’s efforts to address the nation’s housing crisis and is one of the most far-reaching housing bills in the last 40 years. The bill has two major objectives, one is to offer affordable (government backed) mortgages to homeowners at risk of going into foreclosure, and the other is to support Fannie Mae and Freddie Mac with a temporary rescue plan and new, tougher regulatory oversight.

Tags: FHA, legislature, new laws

The number of FHA loans issued shot up 126 percent in the first quarter of 2008 even though they still make up a just small part of the overall mortgage market. Demand for these often-neglected mortgages is surging because they do not require the higher down payments or stellar credit scores that lenders expect from borrowers for conventional loans. In addition, the amount of money people can borrow on these loans is up dramatically this year and many homeowners now find them attractive once again for both purchases and refinancing alike.

Tags: FHA, mortgages