The Housing Bill...

We’ve all heard about the Housing Bill that has been signed by the President. Now we wait for the actual roll-out. Mortgage Insurers (MI companies) and lenders all have to ‘run the numbers’ and see how they actually want to price these products. HUD has to determine what the median price of a home is in different markets. While the bill raises certain lending limits, lenders and MI companies have the option of adding their own spin –their own pricing hits- to the new limits. After all, they are on the hook for a larger amount of money, depending on their agreements with Fannie Mae. Lenders are suffering huge losses, so they will be looking at the numbers carefully. On another subject, mortgages interest rates are almost exactly what they were one year ago.