By Silla Brush - 12/14/09 07:35 PM ET

Controversial legislation that would give judges new power to rewrite home mortgages is on life support.

Leading House and Senate Democrats have fought for more than a year in favor of a policy they argue is critical to stemming foreclosures, keeping people in their homes and boosting the housing market. On Friday, the House dealt it a stunning blow when the measure — attached to a broad financial overhaul bill — failed, 188-241.

The vote was the latest indication that the legislation, which the financial industry calls “cramdown,” does not have the support to make it through Congress anytime soon. The House passed similar legislation in March by a nearly opposite margin, but the Senate effort failed by 15 votes.

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By Dina ElBoghdady
Washington Post Staff Writer
Wednesday, December 2, 2009

The Federal Housing Administration is proposing to increase the up-front cash paid by borrowers as part of an effort to shore up the agency’s finances, which have been staggered by rising defaults in its flagship mortgage insurance program, according to FHA officials.

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This does not help getting an extension for the First Time Home-buyer tax credit.

By MARTIN VAUGHAN and JOHN D. MCKINNON
Tens of thousands of people submitted suspicious — and possibly fraudulent — claims for a federal tax credit meant for first-time home buyers, tax officials told Congress Thursday.

The Treasury tax-oversight office said at least 19,000 filers who hadn’t bought homes claimed $139 million in tax credits and were reimbursed, raising new worries about the housing stimulus as lawmakers consider extending the credit.

Treasury oversight officials said they have found an additional 74,000 tax-credit claims, valued at $500 million, where evidence of previous homeownership could make their claims invalid.

More than 500 people under the age of 18, including a 4-year-old child, also had their names on applications for the credit, which has no minimum-age requirement, federal officials said at a hearing on abuses of the program. Most of the claims involving children were made by parents who purchased a home but were ineligible for the credit because their incomes were too high, said J. Russell George, the Treasury inspector general for tax administration. The tax-oversight office doesn’t answer to the Treasury secretary.

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With the $8,000 homebuyer tax credit due to expire in little more than a month, the Congress is looking into the possibility of extending it for another six months and perhaps even expanding the program’s reach.

On Tuesday the Senate Banking Committee held a hearing on the State of the Nation’s Housing Market. Committee Chairman Chris Dodd (D-CT) called for an extension of the homebuyer tax credit saying, “As part of the economic recovery package, we created an $8,000 first time home buyers’ tax credit, replacing an unsuccessful and overly complex loan program with one that is already having an impact. The homebuyer tax credit has already been used by nearly 2 million first time homebuyers. In addition to helping middle class families achieve the dream of homeownership, the tax credit has helped to stabilize housing prices and the market at large.”

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Ahead of several data reports, speeches from Federal Reserve officials, and a deluge of earnings, a third straight day of sell-offs is looking probable as global markets are bleeding red across the board.

Shares in China and Japan fell 0.62% and 0.64%, respectively, on Thursday, after news that China’s economy posted a slightly-lower-than-expected 8.9% annual growth rate in Q3. Stocks in Europe are worse with London’s FTSE 100 down 1.11% recently and France’s CAC-40 down 1.50%.

Meanwhile, oil futures are trading lower but remain above the psychologically-important $80 mark. Also, the dollar is picking up against an array of currencies this morning; the euro touched above the $1.50 level yesterday but is now lower at $1.4972.

A mass of Q3 earnings reports will hit the headlines today. Key earnings include AT&T, Dow Chemical, 3M, Merck, and McDonald’s.

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Deja vu all over again: Fueling the next housing meltdown

Charles Hugh Smith
Sep 8th 2009 at 4:00PM

Low down payments, risky mortgages guaranteed by government entities, rising defaults — haven’t we been here before? Isn’t this the same mix of easy money and poor risk-management that blew up the housing market in 2007 and 2008?

You’d think the mortgage industry and the federal government would have learned their lesson since the housing bubble’s collapse. But you’d be wrong. Essentially, nothing has changed, except the names of the government-sponsored enterprises.
Freddie Mac and Fannie Mae, the GSEs that fueled the great housing bubble of 2002 to 2007, melted down once a substantial portion of the trillions of dollars of risky mortgages they’d underwritten began defaulting. Now that taxpayer-funded bailouts have footed the bill, Fannie and Freddie are mere shadows of their former freewheeling selves.
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The housing recovery mirage

With home prices rising even in California, it might seem that the worst is over for the housing market. But the good vibrations may be short lived.

NEW YORK (Fortune) — Is the housing bust over?

Shares of Toll Brothers (TOL), Hovnanian (HOV) and KB Home (KBH) and other builders have surged. The exchange-traded fund that tracks the group has nearly doubled since March.

Home starts have risen for five straight months, while sales of new homes recently hit their highest level since last September. Prices are up as well: the Case-Shiller index of national house prices rose 2.9% in the second quarter, ending a three-year decline.

These signs — as well as anecdotal reports about house shoppers growing more willing to write a deposit check — have executives at homebuilding firms declaring the worst is over.

Read Full Article Here.

Lobbying intensifies to extend first-time buyer tax credit

By Kenneth R. Harney

Washington Post Writers Group

August 30, 2009

It’s one of the biggest unknowns bugging would-be buyers of houses and condos this summer: Will Congress let the $8,000 nonrepayable tax credit for first-time purchasers expire as scheduled about three months from now? Or will the credit get a second life and be extended for six to 12 months, taking pressure off buyers, real estate agents and settlement companies?

That’s an especially urgent matter if you’re a buyer just starting to shop and you see entry-level prices bottoming out or rebounding. The tax credit statute requires buyers to fully close on their purchases –– not just be under contract –– no later than Nov. 30. This doesn’t leave a lot of leeway for people who haven’t yet decided on a specific house and who haven’t nailed down mortgage financing.

The whole process of negotiating offers, signing sales contracts, applying for a loan and completing the closing can easily extend for two months –– or a lot more.

Given the rapidly approaching deadline, what’s the likelihood that Congress will blow the whistle and allow at least a little extra time? Though Congress is on its summer break, most members of the Senate and House use part of the August recess to listen to constituents back in their home districts.

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With all the recent changes and upcoming changes in the real estate lending world it is hard to keep track. An oft overlooked party in the real estate closing process is the title company. If you are buying or refinancing your property in Missouri you as a buyer have a choice in which title company to choose. To simply rely on the lender or your real estate agent to select the title company could cost you money. While it maybe convenient for them you may pay a higher price and beware, all title companies are not the same.

When you purchase a home you expect clear title to the property. A title company will search public records to determine if there are any matters that could adversely affect your interest in the property. This search, unlike other forms of insurance, hopes to eliminate any problems before they become an issue. If say for instance a long lost relative lays claim to a piece of property which you own and you have title insurance you will b eprotected.

While researching title companies, make sure they are independent of any lender or real estate company and ask if they have an affilated business arrangement of any kind. If the answer is yes, due your due diligence and shop around. It could save you a considerable amount of money.

Franklin County Title Company in Union, Missouri is an independent title company that has been is business for over four decades and is an independent, non-affilated title company doing things the right way. Give them a call and check out their pricing versus other title companies in Missouri.

Kudos to Franklin County Title Company located in Union, Missouri on their 40th anniversary. Four decades in business is a great achievement and a result of their experience, expertise and work ethic. If you are purchasing a home in Saint Louis, Franklin, Jefferson or Gasconade county we recommend Franklin County Title Company.