Rescue Plan for a Troubled Housing Market?

According to a news report by CNN Money, the Senate has recently moved toward negotiating a bipartisan housing package that could provide relief for the current state of the housing market. These deals, however, are complex and take time, and Congress faces a deadline since 1.5 million subprime adjustable-rate mortgages will reset to higher interest rates this year and will result in a large amount of those borrowers becoming subject to foreclosure if they can’t afford their mortgage at this higher rate. These borrowers are also at risk of then losing their homes within three or four months if they are unable to work out a deal with their lender or find a way to meet payment. The most controversial provision of the recent Senate bill includes allowance for bankruptcy judges to write down the principal and interest on residential mortgages for Chapter 13 filers. This has been objected to by Republicans because it would increase mortgage costs at large, and it is uncertain yet whether Congress will be able to come to the rescue of borrowers in time.

For more information on this recent development, please visit: http://money.cnn.com

29% Decrease in New Mortgage Applications

According to a survey by the Mortgage Banker’s Association, as reported by CNN, application volume has decreased lately with a simultaneous increase in fixed-rate loans. This 29% fall, however, came after a 41% increase in previous weeks. The recent decrease simply reduced the application volume to its previous range. Furthermore, the number of refinances dropped 38%, and purchases dropped almost 12%. This survey provides a glimpse into the current status of mortgage lending, and reaches to mortgage bankers, as well as commercial banks and thrifts, and covers approximately half of all original residential retail mortgages each week.

For the complete story on this survey, please visit: http://money.cnn.com

Jackson Steps down as HUD Secretary

This week, U.S. Housing and Urban Development Secretary Alphonso Jackson, announced that he will be stepping down as the country’s chief housing officer. According to HUD, his term will officially conclude on April 18, 2008, which ends his active and significant role in helping families keep their homes, overseeing the national redevelopment of public housing, and rallying for the needs of the undeserved, to name a few. Through his implementation of the President’s Management Agenda, Jackson also worked to ensure that tax dollars are spent in the best possible way. His explanation for stepping down as chief housing officer was to “attend more diligently to personal and family matters.”

For more information on this story, please visit: http://www.hud.gov/news/release.cfm?content=pr08-046.cfm&CFID=4115041&CFTOKEN=52052542