Bob Neussendorfer

If any of you would care to join me on Facebook please look me up. http://www.facebook.com/neussendorfer

Not much of a blog, just an invitation to extend your and my networks.

Hope you all have a GREAT weekend!

Bob

Following up with more information on TALF:

New CMBS Issues Will Become Eligible for Government Aid at Mid-Month, But Some Fear S&P Action Could Blunt TALF's Ability to Restore Liquidity

By Randyl Drummer June 3, 2009

With commercial mortgage securities poised to become eligible for government help later this month, investor interest in the Federal Reserve's fledging loan program to restore liquidity to frozen capital markets reached a new high in the latest round of subscription requests announced this week.

Demand for loans under the Term Asset-Backed Securities Loan Facility (TALF) reached $11.5 billion in the fourth round of requests that ended June 2 -- up from May's $10.9 billion and a 145% increase over March, the first month of the program, according to the Fed. Investors applied for $4.7 billion in March and a paltry $1.7 billion in April as reported in CoStar Advisor a few weeks ago.

Read more on this great information at:

http://www.costar.com/news/Article.aspx?id=EC91A9E97D07EBAD66BCD671A1A1B33F

Hopefully this will help the commercial real estate industry from hitting the lows that residential real estate experienced. The question is...is it too little, too late?

(Updates with more details on new TALF terms.)

By Maya Jackson Randall

Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The Federal Reserve is broadening efforts to get credit flowing to the commercial real estate market, announcing Tuesday that it will soon accept older bonds as collateral under its Term Asset-Backed Securities Loan Facility.

Starting in July, existing commercial mortgage-backed securities, which the Fed calls legacy bonds, will become eligible as collateral under TALF, the Fed said in a statement.

Until the announcement, the Fed had only agreed to accept newly issued bonds as collateral under TALF, a key program that aims to unfreeze credit markets by providing investors with loans to buy securities. Under those terms, investors could only purchase new commercial mortgage-backed securities, or CMBS, issued this year.

However, the change the Fed announced Tuesday makes commercial real-estate bonds created before 2009 eligible, expanding the scope of securities covered by the government lending facility.

The Fed said the TALF expansion should help borrowers finance new commercial properties and refinance old mortgages on better terms, enhancing its efforts to revive the commercial real estate mortgage market, which came to a standstill in the middle of last year.

"The extension of eligible TALF collateral to include legacy CMBS is intended to promote price discovery and liquidity for legacy CMBS," the Fed said. "The objective...is to restart the market for legacy securities and, by doing so, stimulate the extension of new credit by helping to ease balance sheet pressures on banks and other financial institutions."

To be eligible, the Fed said, newly issued and legacy CMBS must have at least two triple-A ratings from DBRS, Fitch Ratings, Moody's Investors Service, Realpoint or Standard & Poor's, and must not have a rating below triple-A from any of these ratings agencies.

Additionally, the Fed noted that it is in the process of reviewing how best to make use of the ratings agencies.

"The Federal Reserve is formalizing procedures for determining the set of rating agencies whose ratings will be accepted for various types of eligible collateral in the Federal Reserve's credit programs," the statement said.

The Fed added that the initial subscription for TALF loans collateralized by newly issued CMBS will be June 16. The initial legacy CMBS subscription date will be in late July. A specific date will be announced "shortly," the Fed said.

-By Maya Jackson Randall, Dow Jones Newswires;

  (END) Dow Jones Newswires
              05-19-091544ET
              Copyright (c) 2009 Dow Jones & Company, Inc.
            

Here's some quick and positive information for you first time homebuyers from Realtor magazine. If you're a first time buyer and need more information on financing or need a realtors help, whether here in Omaha or anywhere in the US...call me at 402-660-7355 or email bneussendorfer@npdodge.com. I'll get you taken care of properly!

Have a great weekend!!

Bob

Buyer Tax Credit Loan Guidance Coming Soon
Detailed guidance on the federal government's plan to provide short-term loans to borrowers using the First-Time Homebuyer Tax Credit is expected to be out shortly, but a spokesperson from the U.S. Department of Housing and Urban Development, which is writing the guidance, couldn't give a firm release date.

HUD policy staff are "still working out the details on it," HUD spokesperson Lamar Wooley told REALTOR® Magazine today. "So we expect it to be published shortly."

The short-term loan program, which would effectively monetize the first-time homebuyer tax credit by permitting eligible lenders to make bridge loans collateralized by the borrower's expected tax credit, was announced by HUD Secretary Shaun Donovan at the Real Estate Summit NAR hosted on the opening day of its 2009 Midyear Legislative Meetings in Washington last week.

At the summit, Donovan said the loans would enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash could be used as a downpayment.

"FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to 'monetize' the tax credit through short-term bridge loans," Donovan said. "We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."

It's unclear at this point what shape the guidance will take and whether authorization for the loans will be available across the board or only in states in which the state housing finance agency already has a tax credit bridge-loan program in place.

There are 10 states today that have such a loan program, according to the National Council of State Housing Agencies: Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania, and Tennessee.

You can access details of these loan programs on the NCSHA's Web site, "First-Time Homebuyer Tax Credit Loan Programs."

When it's released, the guidance is expected to be issued as a HUD Mortgagee Letter and will likely discuss which federal, state, and local governmental agencies and nonprofit organizations will be permitted to make the loans, and whether lenders such as FHA-approved mortgagees will be permitted to make the loans.

The guidance could also cover how loan amounts will be limited, what happens if repayment problems occur, and what repayment terms would look like.

REALTOR® Magazine will be checking with HUD regularly on the status of the guidance and will report its availability as soon as it's issued.

-By Robert Freedman for REALTOR® Magazine

I thought this was real good news coming out of Washington. Seeing as the residential real estate market is built from the bottom up, the more we can help first time buyers the better for the overall market. This is a good read. As always if I can help you with your real estate needs, anywhere in the United States, residential or commercial, please email me at bneussendorfer@npdodge.com

Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

"We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Other Solutions for Today's Market

During his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. "I do think we have some early signs that the market overall is stabilizing," Donovan says. "Since January we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."

The morning session included a panel discussion that was moderated by CNBC's Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation's taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort.

"Right now the Federal Reserve is the market," said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. "What will be the effect when the Fed stops buying?" Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely.

"We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy," said NAR President Charles McMillan. "We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond."

The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.

Source: NAR