The Housing and Economic Recovery Act of 2008 (Pub.L. 110-289, 122Ã, Stat. 2654, enacted July 30, 2008) (often referred to as HERA ) is designed especially to overcome the subprime mortgage crisis. It's the official Federal Housing Administration to guarantee up to $ 300 billion in a new 30-year fixed rate mortgage for subprime borrowers if the lender writes the principal loan balance up to 90 percent of the current valuation score. It is intended to restore confidence in Fannie Mae and Freddie Mac by strengthening the rules and injecting capital into two major US mortgage suppliers. The state is authorized to refinance subprime loans using mortgage income bonds. The enactment of the Act led to the conservatory government of Fannie Mae and Freddie Mac.
Video Housing and Economic Recovery Act of 2008
Legislative history
The law was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008.
Next amendment
Some legal provisions have been modified by the American Recovery and Reinvestment Act of 2009, signed into law by President Obama on February 17, 2009.
Maps Housing and Economic Recovery Act of 2008
Federal Housing Financing Bod
The Act also establishes the Federal Housing Finance Agency (FHFA) of the Federal Housing Finance Council (FHFB) and the Office of Federal Housing Companies (OFHEO).
Through the powers granted to FHFA, created by the Act, on September 7, 2008, FHFA director James B. Lockhart III announced he had placed Fannie Mae and Freddie Mac under the FHFA conservator. The move is "one of the largest government interventions in private financial markets in decades".
Subtitle of Act
Housing Assistance Tax Act of 2008
Includes first-time buyer buyer tax credit for purchases on or after 9 April 2008 and before 1 July 2009 at 10 percent of the purchase price of the primary residence, up to $ 7,500.
- Eliminate credit for taxpayers with revenues in excess of $ 75,000 ($ 150,000 for joint return).
- A compulsory taxpayer who receives a credit to pay more than 15 years in the same installment charges an additional fee on the taxpayer's annual income tax.
The law provides emergency assistance for redevelopment of abandoned and foreclosed homes.
FHA Modernization Act of 2008
FHA loans are mortgage loans whose payments are guaranteed by the Federal Housing Administration (FHA).
Action:
- The increased FHA loan limit from 95 per cent to 110 per cent of the average home area price up to 150 per cent of GSE as per the loan limit, or $ 625,000), effective January 1, 2009.
- A minimum down payment of 3.5 percent is required for all FHA loans.
- Placing a 12-month moratorium on the Department of Housing and Urban Development to apply risk-based premiums.
- Prohibit payment of money funded by the seller.
Federal Housing Financing Reform Act 2008
This law sets the Federal Housing Finance Agency (FHFA) as an independent federal agency.
HOPE for Homeowners Act of 2008
- Authorize FHA to insure up to $ 300 billion of loans with a fixed rate of return for 30 years to 90% of the assessed value for the depressed borrower.
- Protected mortgage commitments made on or before January 1, 2008.
- An existing mortgage holder is required to receive a secured loan result as a full payment for all existing debt.
- Participation of lenders in this program is not required but is voluntary.
As of February 2009, only 451 applications have been received and 25 loans completed, far from the estimated 400,000 homeowners expected to participate. This is due to high costs, high interest rates, the need for a reduction of loan principal on the part of the lender, and the requirement that the federal government receive 50% of each award in the value of the home. Congress initiated a hearing on the program in February.
Mortgage Disclosure Act 2008
Safe and Fair Implementation for Mortgage License Act of 2008
"Safe and Fair Enforcement for Licensing of Mortgage Licenses" (12 United States Code, Section 5100, et seq. ), endorsed by Congress and signed by President G.W. Bush in 2008, requires all countries to apply the Mortgage Loan Originator (hereinafter: "MLO") licensing and registration system on August 1, 2009 (August 1, 2010 for legislative meetings every two years). States may operate their own systems, subject to strict federal standards, or they may participate in the National Mortgage Licensing and Registration System (hereinafter: "Register"), services operated jointly by the State Bank Supervisory Conference and the American Association of Residential Mortgage Regulators (CSBS/AARMR). If state licensing and registration programs do not meet minimum standards at all times, the US Department of Housing and Urban Development (HUD) is empowered to take steps and implement a system of compliance with the state.
The SAFE Act is intended to provide uniform national licensing standards, as these licensing standards are not uniform from country to country over the last 20 years. It is also designed to create a comprehensive licensing database so that all relevant information in MLO will be centralized and publicly available. This should enable consumers to research, obtain unbiased professional information, and help them choose the professionals to handle. Especially, it will help them in identifying and avoiding bad actors. Finally, it is expected, widespread use of the Registry will encourage dishonest MLOs and incompetent exit from the mortgage lending business completely.
After registration, MLO is provided with a Unique Identifier number. All MLOs and their employers are required to provide this unique identifier to anyone who requests it, and the federal mortgage institution, Fannie Mae and Freddie Mac, requires that it be placed on all loan documents for the loan they purchase. Consumers will be able to use this number to get basic information about any MLO listed. This information includes names and aliases, employment history, current employment and contact information, negative civil judgment or settlement, and history of discipline and crime.
The laws and regulations of implementation, issued jointly by federal banking institutions in 2010 (12 of the Code of Federal Regulations III, section 365.101, et seq. ), define "mortgage lenders" as any individual both are taking home loan applications and "offering or negotiating" the term residential mortgage lending. In addition, the individual must perform this activity for economic gain ( i.e. , get paid for it). Persons who only perform administrative or administrative duties in regard to origination loans are not considered MLOs. The terms, "take out mortgage loan application" and "offer or negotiate terms" are defined so broadly that almost everyone in the underwriting process that has more than a cursory contact with a potential borrower is MLO. Mortgage loans include refinancing and financing transactions, reverse mortgages, home equity loans and virtually all other credit transactions secured by the first or junior lien on the residence.
Not everyone who qualifies as MLO is required to be licensed or to register with the newly renamed National Civil Mortgage and Licensing System and Registry ("Register"). Licensed realtors and MLOs working for federal financial institutions are regulated, for example, are not required to be licensed as MLOs, even though they are required to register. Those who will be required to register are released if they have (1) never registered before and (2) perform five or fewer mortgage loans within a twelve month rolling period. Registrations must be updated annually, and applicants must submit fingerprints for criminal background checks along with their first enrollment application.
See also
- Homeowners Refinancing Act (1933)
References
External links
Summary of actions
- "Summary" (PDF) . US. Department of Housing and Urban Development .
News enforcement
- Jackson, Paul (July 26, 2008). "As the Housing Act Passes Congress, the Emerge Question".
- Jeremy Pelofsky (July 30, 2008). "Bush signed the housing bill as Fannie Mae grew". Reuters .
- "Bush Size Size for Home Owner, Fannie, Freddie". Bloomberg . July 30, 2008.
Voice of Congress
- http://www.govtrack.us/congress/bill.xpd?bill=h110-3221
Source of the article : Wikipedia
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