Saturday Senate Session – July 26, 2008
Gloria’s Notes:
Earlier today, the Senate voted to end debate on the housing bill in what is known as a “cloture” vote. The bill is now ready to go to the floor and will be brought up tomorrow in a highly unusual Saturday session of the Senate.
In a unusual Saturday session, the Senate will take up the final vote on the FHA Housing Rescue Bill, tomorrow, Saturday, July 6th. After that it will be rushed to the White House to be signed into law. Previously President Bush objected to several items in the bill, such as the funds to be granted to cities to buy up foreclosure properties.
The cities have a huge interest in neighborhoods with high foreclosure rates because these empty properties are extremely tempting to vanalism, other crime, further eroding the values of occupied homes. Banks don’t seem to have the resourses or interest in maintaining all these homes.
Of course, if the cities buy foreclosure homes, that takes them off the bank’s books, and out of the bank’s responsibility. Therefore, many people look at this as a bailout for the banks; however, if you have several empty properties surrounding your home, as my cousin does in Arizona, it would be a relief if someone took over and cared for the property until it could be sold.
However, President Bush now wants this bill to become law so FHMLC and FNMA, who buy over 50% of the loans lenders make, can be more tightly regulated, and be provided a line of credit to continue to buy loans and help prevent a collapse in the devastated housing market.
However, the expers predict that by fall we’ll see some major changes in how the housing market is performing. Below is an Alert from NRMLA (National Reverse Mortgage Loan Association.
Gloria
Senate to Vote on Housing Bill Tomorrow
Since cloture was passed by an 80-13 vote, we expect final passage by the Senate to go through without a hitch. Once the Senate approves the bill, it will be sent to the White House for the President’s signature.
We are not sure whether he will sign it immediately upon receipt or schedule a White House signing event for sometime next week.
The changes in the law will then have to be implemented by Mortgagee Letter(s) to be issued by HUD, probably within the next 30-60 days.
Peter Bell
President
NRMLA
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