Most of the time it seems as if political activity in Washington D.C. is in slow motion. But this week several important announcements made news related to the mortgage industry. A quick summary:
$490M granted to Affordable Housing program: The American Recovery and Reinvestment Act received additional funds of nearlly $490 Million for the construction and renovation of affordable housing in 12 states. The Treasury Department says the stimulus program is designed to contribute to economic stability "one community at a time" through the creation of much needed jobs and development of affordable housing. The 12 states receiving funds are: Alabama, Arkansas, Connecticut, Georgia, Louisiana, Maryland, Massachusetts, Montana, New Mexico, Vermont, New Hampshire and the Virgin Islands. The Treasury Department is also expected to award more grants in the coming weeks.
Loan Modification Efforts Need to Be Increased: Timothy Geitner, Treasury Secretary, is urging mortgge servicers to improve upon thier loan modification efforts so the administrations efforts to help struggling homeowners stabilize the ousing market will be successful. Srcterary Geitner sent 25 servicers a letter noting that a good start has been made, but "much more progress is needed." He indicated that there are many variations among servicers in their performance and in the borrowers experience, along with inconsistent results. He also announced that starting in August monthly reports will be issued showing each servicer's performance. Also, an expanded role for Freddie Mac as an auditor was announced -- with the abillity to take a "second look" at borrowers who were denied modifications.
And a reminder that the new Truth in Lending Disclosure requirements take effect on July 30, 2009.
At InSight Mortgage Group we are ready to answer your questions about how these, or other announcements, may affect your loan process. Call us at 913-642-3334 or email us at michele@wantinsight.com or dickw@wantinsight.com.
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