About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
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The FHA reform bill that passed in the House is a lot more aggressive than the bill that passed in the Senate. Here is an excerpt from an excellent article discussing the details of each from Les Christie over at CNNMoney.com:

NEW YORK (CNNMoney.com) — A Senate bill that would expand the functions of the Federal Housing Administration (FHA) could help upwards of 200,000 homeowners – though a similar House bill that passed last month is more aggressive.

Christopher Dodd (D – Conn.), the sponsor of the Senate bill, which passed last week, hopes to make low-cost, fixed-rate mortgages available to more homebuyers and to homeowners seeking to refinance out of expensive adjustable rate mortgages (ARMs).

“This measure can shield homeowners from harm by helping families find safe, fair and affordable mortgages,” said Dodd in a statement. It can help provide credit, both for new homeowners and those seeking a way out of abusive loans in which they are currently trapped.”

FHA-insured loans have become an important element in the proposed solutions to the subprime mortgage crisis. There is bipartisan Congressional support for the measures and from the Bush administration.

FHA mortgages are consumer friendly loans made by private banks that are insured by the government. That makes them especially attractive to lenders because the government guarantee enables the lenders to easily sell off the loans.

Comments (0) Posted by G.R.A. Admin on Monday, December 31st, 2007


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