Justin Alexander

Stay in the Know The new loan limits for Fannie Mae and Freddie Mac are the greater of either $417,000 or 115 percent of an area’s median home price, up to $625,500. The new FHA loan limit will be the greater of $271,050 or 115 percent of an area’s median home price, up to $625,500. Both new loan limits will be effective at the expiration of the economic stimulus limits on December 31, 2008. More bill provisions: *A temporary increase in mortgage revenue bonds to refinance subprime mortgages. *New regulator for Government Sponsored Enterprises to restore investor confidence in GSE loans and help the market and economy stabilize. *First-time home buyer tax credit, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home’s purchase price, up to a maximum of $7,500. *The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years. *Temporary raise in the loan limit for the Veterans Affairs home loan guarantee program to the same level as the economic stimulus limits until the end of 2008. *Adjustment to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), allowing sellers to provide the non-foreign affidavit to a qualified closing entity and not just the buyer. *The setting of minimum requirements for mortgage originators, which mandates fingerprinting of loan originators and establishes a nationwide loan originator licensing and registration system. The requirements do not apply to those only performing real estate brokerage activities unless they are compensated by a lender, mortgage broker, or other loan originator. States will have the ability to implement more stringent laws. *The creation of a National Affordable Housing Trust Fund to help cover the cost of the *FHA rescue plan for the first five years and develop affordable housing in subsequent years. *The Treasury Department’s proposal to create a federal backstop program to insure the financial well-being of Fannie Mae and Freddie Mac. *The FHA’s inability to insure loans that utilize a seller-funded down-payment assistance program. Down-payment assistance from family, employers and other nonprofits is still allowed. *The Community Development Block Grant Programs’ $4 billion allotment for communities to purchase and refurbish foreclosed homes.