On July 14, the Federal Reserve is expected to present a revised set of rules governing mortgage lending. Proposed rules issued in December drew significant criticism from lenders, who fear that tougher standards at a time when credit already is tight could make many mortgages more costly by increasing paperwork and creating additional legal issues. At the same time, consumer groups argue that the proposed rules already are too weak and that efforts to alter the proposal could make it ineffective.
Starting in March 2008 during the near-collapse of Bear Stearns, the Fed initiated what was expected to be a six-month program to avert further bank defaults among the 20 top investment banks that regularly trade Treasury securities. Under federal law, the program may continue beyond September 2008 only if “unusual and exigent circumstances” exist in the financial markets. Under the program, the government may hold a wide variety of investments, including hard-to-sell mortgage-backed securities, as collateral for the overnight loans.
Speaking Tuesday, Fed Chairman Ben Bernanke reiterated his support for the proposed overhaul of Fannie Mae and Freddie Mac. “If these firms are strong, well-regulated, well-capitalized and focused on their mission, they will be better able to serve their function of increasing access to mortgage credit, without posing undue risks to the financial system or the taxpayer,” Bernanke said.
Based on these future changes, could mean tougher guidelines, and possibly higher rates when new buyers go to buy a home. If your thinking on purchasing a home, I strongly recommend you to getting your loan process started and starting your home search, before these future changes in financing causes higher payments and or more difficulty in getting a loan to buy your home. Know your price range & payments by being pre-approved with a reputable lender. As your agent I will help advise you to simply the process buying your future home. We are on standby for you when your ready to get started, if you are ready go to my website at County Properties.