Realtors -- Are You Being Bombarded With Requests to Support H.R. 6694?

I am.

The President had barely had time to recover from signing the Housing and Economic Recovery Act of 2008 (which he did behind closed doors since he had opposed it for so long and then decided his veto would be over-ridden, so he better just go along), when some Congress-persons got whipped into introducing a bill to amend the new law.

That's because the new law will basically destroy Nehemiah Corporation and similar private downpayment corporations that have been established in recent years to funnel seller money back to buyers, disguised as "gifts" from these private corporations. This allows the buyers to claim the money as downpayment funds to meet the FHA 3% minimum (soon to be 3.5%). These mortgages have had huge default rates, so Congress decided to eliminate them.

Yes, not giving downpayment assistance to people unable to make mortgage payments will hurt builders, mortgage originators, and real estate agents, but will it help the country? That sounds like I'm begging for a "No", but I honestly am not sure and wish we could have some more facts and a decent hearing on this issue.

Here's more on this topic, posted on my other blog: Unintended Consequence of Housing and Economic Recovery Act?

Note: the recently enacted law that this bill is trying to "correct" does not eliminate downpayment assistance from public entities (like the City of Flagstaff or Coconino County), from employers, labor unions, or relatives of the homebuyers.

Looking to buy or sell Flagstaff real estate? Contact Team Heitland at RE/MAX Peak Properties!