Extension of SBA Loan Limits & the FTHB Credit

Rates continue to be excellent for home buying and refinancing, whether for personal use or investment. And while the MBS prices just dropped below the 200-day moving average we are still in better territory than we were all summer which was very good on its own.

Commercial property loans have also benefited from the improving rates recently. And while many lenders are just saying “no!”, Signet Mortgage’s lender connections are closing commercial purchases and refinances for owner-users and investors. During this past week, the White House was actively pushing for extending small business lending options (click here.). The key improvement that may affect commercial property owner-users is the expansion of limits where prior SBA caps were in the $2M neighborhood, would be moved to $5 - 5.5M. This will allow operators with existing SBA loans to go back to the well for additional loans. We are tracking legislation sponsored by Senator Landrieu (D-LA) to implement that change.

On the Homebuyer Credit front, hearings on the topic drew some attention in the week. For a good summary from Bulletin writer Keith Chu, scroll to the very bottom of this newsletter. One of those giving testimony was Senator Johnny Isakson (R-GA) who has been a Realtor in his career. Senator Isakson made a passionate plea for extension and expansion of the credit through the middle of next year. Other senators listen to him on Real Estate matters. Isakson’s testimony complete with charts showing examples of the pricing meltdown and the effect of foreclosures in the suburban Atlanta area is interesting and you can view it by clicking here.

A quick note on the residential lending process: I’m sure you have all experienced of heard of difficulties with residential appraisals recently. This has been the result of the HVCC imposed on banks and therefore borrowers by the NY State Attorney General. There is currently legislation making real headway in congress that would overturn the HVCC, allowing qualified lenders and brokers to order appraisals again. Another processing matter you need to be aware of is the change to Truth in Lending (TIL) rules. The effect is a 3-7 day disclosure requirement at the end of the process that can extend closings. Make sure you have baked in enough time to cover these longer turn times when writing contracts.

If these process headaches have been making you ill, you will want to check the helpful chart further down that compares the H1N1 swine flu symptoms to the common cold. Most important to remember is, if you have the flu, stay away from others for 24 hours after your fever (100°) has subsided for 24 hours without fever reducing aids like Tylenol

Important economic news in the coming week includes housing on Wednesday, jobs and GDP on Thursday and Consumer Prices/Inflation (PCE) on Friday.

Through all of this, rates remain fantastic. Is there anyone you know who would benefit from receiving this kind of timely information? Please hit the reply button and let me know – I’ll be happy to help them make informed decisions in this important time. Or give me a call anytime at 541 318 0888. I look forward to helping you, your clients, family and friends get the best professional advice and service available. Make it a great week!