Palm Beach Real Estate and Loans

Last week, President Bush signed the Housing and Economic Recovery Act of 2008 into law.

Since then Knightlines Mortgage Services and I have been getting asked quite a few questions - basically, people want to know how it applies to them.

Basically, the Act is aimed at stabilizing the housing market - specifics include:

• Modernization of the Federal Housing Administration by improving technology, performance, fraud detection and increasing staffing.
• FHA Rescue - a voluntary program where a lender writes down the loan balance in exchange for a FHA guaranteed loan.
• Fannie Mae and Freddie Mac will be subject to stronger regulation.
• Tax Incentives - including a $7,500 refundable tax credit for first-time home buyers.
• Truth in Lending Act reform - requiring that TILA disclosures be delivered 7 days prior to closing.
• Licencing - The intent here is to create a national licencing system, minimum qualifications for all originators, and a registry for banks and thrift employees that act as originators.

That's it in a nutshell and while it's not perfect, it certainly is a big step in the right direction.

Now, just to get my 2 cents in, the best thing the government can do is REALLY enforce the rules, laws, regulations that are enacted!!!!!!

You can make all the rules that you want, but if no one is held to them - what difference does it make?