A Week Full of Tax Credit Informationby Tim Manni
Last week’s blog posts pretty much focused on the homebuyer tax credit’s closing deadline. We did our absolute best to deliver the latest news as it happened. Let’s review last week’s posts:
All right! The deadline has been extended to September 30! I work in mortgage banking and have been working nights and weekends since early April to try and get the loans done so customers can get the tax credit. We have been slap-dashing through the files and are exhausted. There is pressure from customers and realtors to approve loans that we shouldn’t, and that makes things harder.
UDATE3: According to a report on MarketWatch.com, President Obama signed a three-month extension of the homebuyer tax credit closing deadline this morning.
The president also signed into law the “National Flood Insurance Program Extension Act of 2010,” reports HousingWire.com.
To our knowledge, lawmakers weren’t able to agree on the extension of unemployment benefits before their July 4 recess.
However, given the slew of negative economic reports we’ve seen over the last few weeks, the evidence suggests that this summer season may be even slower, even quieter than many in the past; and that has to do with a lot more than just housing.
The Home Affordable Unemployment Program (HAUP) begins today. It is designed to provide relief to unemployed homeowners. HAUP (referred to as “UP”), “offers eligible unemployed borrowers a forbearance plan to temporarily reduce or suspend their mortgage payments.”
By August 1, 2010, all servicers who are participating in Making Home Affordable will be helping homeowners who are struggling to stay current because of unemployment.
Earlier today I was discussing the upcoming expiration with a colleague when she asked me, “What happens to the housing market without the homebuyer tax credit?” I proceeded to tell her that May’s dismal home sales numbers have already given us a taste of just how bad the falloff from the tax credit has been and will be.
Late last week the Senate failed to secure enough votes to push through a bill that would not only extend unemployment benefits, but would also extend the closing deadline for borrowers looking to take advantage of the homebuyer tax credit.
The way it stands now, this Wednesday (June 30) looks to be the official end of the homebuyer tax credit.
If you were following us last week you would have read that mortgage rates once again fell to record lows. How low? We’re talking the lowest levels in 54 years. On Thursday of last week, the 30-year Conforming fixed rate rang in at 4.69%, a figure last seen in 1956.