Senate moves toward easing terms of loans

Monday, May 11, 2009

by Rob Zwemmer

Monday, May 04, 2009

www.DesertRealEstatePrices.com

Good Monday Morning

98°F | 72°F

The Senate voted on Wednesday to make it easier for homeowners with risky credit to switch to a lower-cost mortgage backed by the government. The bill, passed 91-5, also would give banks a break by encouraging reduced fees they must pay for the government to insure deposits. While both steps put taxpayer money on the line, lawmakers say the legislation is needed to prevent the economy from getting worse.

Also on Wednesday, the House agreed to a Senate-passed bill that would hire hundreds more FBI agents and prosecutors to investigate mortgage fraud. The legislation, expected to reach the president's desk soon, also would establish a $5 million, independent commission to investigate the cause of the financial crisis and chart a path forward.

The Senate housing bill would expand an existing $300 billion program called “Hope for Homeowners,” which encourages lenders to write down an individual's mortgage if the homeowner agrees to pay an insurance premium. The program, which is set to expire in 2011, is intended to swap out a homeowner's high-interest rate for a 30-year fixed loan backed by the Federal Housing Administration.

On a different note ; the Canadian dollar has gained strength in the last couple of weeks what will bring new Home buyer business to the valley.

Palm Springs Area Mortgage Market update! 1 Canadian dollar = 0.868659 U.S. dollars