Fact Sheet: The Mortgage Forgiveness Debt Relief Act of 2007

President Bush Signs Legislation Protecting American Families From Higher Taxes When They Refinance Their Homes

"When your home is losing value and your family is under financial stress, the last thing you need is to be hit with higher taxes. So I'm working with members of both parties to pass a bill that will protect homeowners from having to pay taxes on cancelled mortgage debt."
─ President George W. Bush, 9/1/07

Today, President Bush signed the Mortgage Forgiveness Debt Relief Act of 2007, which will help Americans avoid foreclosure by protecting families from higher taxes when they refinance their home mortgages. This Act will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. Under current law, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treats the amount forgiven as income that can be taxed.

This Act will increase the incentive for borrowers and lenders to work together to refinance loans and allow American families to secure lower mortgage payments without facing higher taxes.

This Act Is A Good Step To Address The Housing Market, But Congress Has More Work To Do

Congress needs to complete work on responsible legislation modernizing the Federal Housing Administration (FHA). This bill will give FHA the necessary flexibility to help hundreds of thousands of additional families qualify for prime-rate financing.

Congress needs to pass legislation permitting State and local governments to help troubled borrowers by issuing tax-exempt bonds for refinancing existing home loans. Under current law, cities and States can issue tax-exempt bonds to finance new mortgages for first-time homebuyers.

Congress needs to pass legislation to reform Government Sponsored Enterprises (GSEs) like Freddie Mac and Fannie Mae. GSEs provide liquidity to the mortgage market that benefits millions of homeowners, and it is vital that they operate safely and soundly. The President has called on Congress to pass legislation that strengthens independent regulation of the GSEs and ensures they focus on their important housing mission.

The Administration Has Moved Forward On Targeted Actions To Assist Homeowners That The President Announced In August

The President and his Administration have launched a new initiative at the Federal Housing Administration (FHA) called FHASecure. FHASecure expands the FHA's ability to offer refinancing by giving it the flexibility to work with homeowners who have good credit histories but cannot afford their current payments. By the end of 2008, the FHA expects this program to help more than 300,000 families refinance their homes.

Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson have assembled the private-sector HOPE NOW alliance. HOPE NOW recently mailed hundreds of thousands of letters to borrowers falling behind on their payments and is supporting a toll-free mortgage counseling hotline, 1-888-995-HOPE.

HOPE NOW has developed a plan under which up to 1.2 million homeowners could be eligible for assistance. The HOPE NOW plan will help subprime borrowers who can afford the current, starter rate on a subprime loan, but would not be able to make the higher payments once the interest rate goes up.

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A Glimmer of Hope for LV housing

Sales stats seen as indication bottom of slump is near
By HUBBLE SMITH
Dec. 12, 2007
Las Vegas Review-Journal

Nobody's ready to declare that the Las Vegas housing market has reached bottom, but some real estate experts are convinced the floor is at least being established.

The inventory of homes for sale receded slightly in November to 23,494, about 400 fewer than the previous month, and sales remained below 1,000 for the third consecutive month, the Greater Las Vegas Association of Realtors reported.

Inventory is up 19.1 percent from a year ago and sales are down 37.4 percent, but the hard numbers have leveled off over the past few months.

"It appears we have reached the bottom everyone is waiting for," Robin Camacho of American Realty & Investments said. "December is looking horrible, but it's December and it's always the worst month. November did finish flat. Pending sales were rising, then stalled. Now they are rising again, which means in 30 to 60 days, sales should be rising.

"Unfortunately, foreclosures and short sales are still rising. But listings are decreasing and pending sales are rising. These are the positive signs we've been watching for."
The number of condominiums and townhomes listed for sale fell 0.9 percent in November to 5,989.

Read Full Article

Overview of the Las Vegas Nevada Real Estate Market

Information updated November 28, 2007.

The thrust of economic development in Las Vegas, Nevada is greater than anywhere in the United States, and greater than anywhere on the planet earth. The gaming industry alone has spent 20 billion dollars over the last 14 years. This incredible economic growth, combined with available land, water and a political climate favorable to development has led a very strong market for both new and resale homes.

There is tremendous development activity on and around the strip. It is estimated that with the projects in place, 45,000 more hotel rooms will be added to the strip area by 2012. Deutsche Bank Securities estimates the casino industry will need to hire 113,500 workers for the positions being created. The projects underway include the 6 billion dollar project CityCenter, 1.8 billion dollar Palazzo and the 1.4 billon dollar Encore. In addition, Boyd Gaming is preparing the closed Stardust site for their Echelon Place, a 4 billon dollar project. Station Casinos has broken ground in February on their 600 million dollar hotel casino in North Las Vegas. Additional projects scheduled to open in the 2008-2009 period include Turnberry Associates Fontainebleau and the Trump International Hotel and Tower.

Downtown is also turning into a hot bed of development. Union Park, a 61 acre development just west of Fremont, is becoming a reality. The Lou Ruvo Brain Institute has broken ground and the Smith Center for the Performing Arts scheduled to break ground in 2008. The World Jewelry Center with 1 million sq. ft. is in the planning stages as well as a number of retail and residential projects. The World Market Center, just to the west of this is partly finished and in operation. The World Market center will have over 12 million sq. ft. of floor space when completed. Three new residential high-rise developments are under construction, Streamline Towers, Newport Lofts and Juhl. Soho Lofts is now completed. An number of upscale bars, shops and restaurants are moving into the area.

A recently released study of the local market, commissioned by the Southern Nevada Homebuilders Association and done by Applied Analysis, forecasts the following: "the largest wave of openings (strip area projects) in the regions history is set to begin....later this year. We estimate that this and other contributing factors will stimulate demand for 177,400 housing units between 2008 and 2012, a 13.3% increase over the demand reported during the preceding five-year period (ie., 2003 through 2007)." This 75 page study predicts that housing supply will peak late 2007/early 2008. They estimate that cutbacks in permitting activity combined with this increased demand could possibly create a housing shortage by late 2009.

by Millie Fine
Thanks to
Kristy Pentoney-Frias
Title One

Nevada Mortgage Crisis Rebound Predicted

December 04, 2007 - CARSON CITY, Nev. —

Nevada's economy should be so strong by 2009 that a housing shortage may be the big concern rather than the current mortgage crisis and heavy surplus of homes for sale, an economist told lawmakers.

While Nevada now has the highest home loan foreclosure rate in the nation, Jeremy Aguero of Las Vegas-based Applied Analysis told a legislative panel studying the state's mortgage problems that it's "a great fallacy" to have doubts about another economic boom in the state.

With some $36 billion in megaresort construction occurring in Las Vegas in the next few years, Aguero said Monday the people holding new jobs created by the building activity will buy up homes now available on the market and probably need more.

"You won't have enough housing stock for all the jobs in the near-term pipeline," Aguero said after the legislative hearing, adding, "How many markets can you point to with a $36 billion investment in their core industry alone that have long-term housing problems? Very, very few."

While a turnaround is on the horizon, Aguero and other economists and experts told the legislators that Nevada's problems related to foreclosures and overbuilding are likely to get worse during 2008.

Douglas Duncan, chief economist for the Mortgage Bankers Association, predicted that the problems with Nevada's foreclosure rate and other housing industry woes won't bottom out until late October in 2008.

Keith Schwer, director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, added that a drop in building permits should continue in 2008. But he said the upcoming resort expansion should cut deeply into the number of vacant housing units _ more than 27,000 _ now on the market.

Mendy Elliott, director of the state Business and Industry Department, recommended against a state "bailout fund" to help deal with subprime loans. Former state Sen. Joe Neal of North Las Vegas agreed, but said a freeze on subprime loan rates would help consumers.

The Dulcie Crawford Group Announces Market Snapshots

We are proud to now offer the Market Snapshot service to buyers and sellers. An interactive view of the local home market will help buyers in their home searches and sellers better understand the market competition. Remember that the team is always available to help interpret and utilize this valuable information!

The Dulcie Crawford Group Announces Featured Homes and Featured Communities on Realtor.com

The Dulcie Crawford Group is committed to do everything we can to attract buyers to the comes and communities where we market. To further to expand this commitment, we are pleased to announce a new marketing partnership with Realtor.com. Now our listed homes can be featured on the most popular realtor website on the net.

Generally speaking, the laws of supply and demand influence the favorable pricing of a home. Accordingly, it is possible that the more exposure a property receives the greater the potential demand, which may result in more competition for a property. It is for that reason The Dulcie Crawford Group has added the Featured Homes position on Realtor.com Web site, when available and with the approval of a home seller. While no one can guarantee a certain price for a home, this powerful marketing system helps esnure that our listings receive maximum exposure, which in turn can generate the maximum price.

According to the National Association of Realtors, 77% of home shoppers go to the Internet to search for a home and 82% of those searchers start with Realtor.com. Our new partnership with Realtor.com puts our listings in the position of maximizing their online exposure by an estimated 500%.

Las Vegas Housing Market to Rebound March 2008 Predicts Las Vegas' Number One Appraisal Firm

Largest Las Vegas Real Estate Appraisal firm principal announces Las Vegas Housing Market predictions for "rebound" to begin on 31 March 2008. Las Vegas housing market rebound prediction made by Las Vegas largest and most respected Real Estate Appraisal firm, considered the number one real estate appraisal firm as ranked by "In Business Las Vegas" and other industry journals. Vegas housing market rebound predictions made based upon emperical data and industry expertise.

Las Vegas, NV (PRWEB) October 7, 2007 --

Largest Las Vegas Real Estate Appraisal firm principal announces Las Vegas Housing Market predictions for "rebound" to begin on 31 March 2008. Las Vegas housing market rebound prediction made by Las Vegas largest and most respected Real Estate Appraisal firm, considered the number one real estate appraisal firm as ranked by "In Business Las Vegas" and other industry journals. Vegas housing market rebound predictions made based upon emperical data and industry expertise.

"Mark your calendars, investors, home owners and anxious home sellers: The Las Vegas real estate market will rebound on March 31, 2008," predicts, Don Foster Scoggins, Nevada Certified General Real Estate Appraiser with AppraisersofLasVegas.com, Las Vegas' number one appraisal firm as rated by: 'In Business Las Vegas'.

"There is a huge pent-up demand for homes in Las Vegas, but buyers cannot or will not buy right now," Scoggins stated. "Those who can't buy because of financing will find FHA or other loan products along with lower rates in the coming months. Those who won't buy because of market uncertainty will start snatching up homes as investments as they expect price appreciation and profit for fixer-uppers, foreclosures and flips."

Commercial real estate appraisers in Las Vegas will tell you the local real estate market is ruled by the herd mentality. "Developers will hear of a shortage of apartments or industrial space and huge numbers spend a year or more to bring that product to the market. Then, when all of the new development comes on line at the same time, an oversupply begins and the herd moves on to the next high demand property type," Scoggins explained.

According to Scoggins, March is when the pendulum will begin to swing back for Las Vegas housing prices. "March begins the annual selling season, and we basically didn't have one here in Las Vegas in 2006," Scoggins explained.

Until 2007, each year the trend in the annual selling season was the same, although the numbers have differed. Scoggins has made the following expert prediction: "In March of 2008 we will see the trend resume. Even a modest number of sales will jerk the slack out of the oversupply train and begin the turnaround. On March 31, 2008, the Las Vegas housing market will officially be on its way back - appreciating slowly but steadily and getting back to 2006 levels within a couple years."

Scoggins' prediction of March 31, 2008 as the date Las Vegas property values will rebound is bolstered by three key data points.

First, Las Vegas continues to attract tourists as illustrated by the fact that McCarran International Airport accommodated a record of 4.3 million passengers in July. "When talking about big numbers, this 4.7% increase over the same month a year ago is huge," Scoggins stated with confidance. "If this were some small airport, a 5% swing would be no big deal. But, McCarran is the 11th largest airport in the world and the sixth largest in the U.S."

Second, commercial development projects currently underway are providing the local economy a needed economic booster. Developers are plunging some $2 billion a year into City Center, the largest private construction project in the world. The $4 billion Echelon Place will be built between 2008 and 2010 - another $2 billion per year being pumped into the economy. Encore at Wynn Las Vegas will be completed in 2008 at a cost of $1.8 billion.

"There is over $14 billion in just four projects - another indicator the construction industry has not collapsed," reminded Scoggins. Historically, the employment of permanent workers for new large hotel casinos is an even bigger boon to the economy.

Finally, the retail sales and gambling take of the local casinos continues to fuel the Las Vegas economy and provide jobs - and commercial construction has boomed even while residential sales have busted. "Commercial appraisers in Las Vegas are doing well - we're hiring - but, Las Vegas residential appraisers, mortgage brokers, and residential home builders and their various subs and suppliers are suffering," Scoggins, Certified General Appraiser notes. "But, the pendulum swings both ways.

"Wait until March 31, 2008. Everyone in the industry is saying 18 months to two years. But this is Las Vegas, not Detroit." Stated Don Scoggins.

Scoggins is a principal of AppraisersofLasVegas.com, the largest appraisal company in Las Vegas and has been for the past seven years according to 'In Business Las Vegas'. AppraisersOfLasVegas.com appraises houses to high-rises, condos to casinos, land to large industrial complexes in Las Vegas, Henderson, North Las Vegas, Clark County and many parts of Nevada. Principals include Don Foster Scoggins, a Certified General Real Estate Appraiser, and Arthur F. Nelson, MAI, RM, Certified General Real Estate Appraiser. Both are residential and commercial appraisers licensed in Nevada to provide appraisals of houses to high-rises and condos to casinos. They are often sought after as expert witnesses in real estate litigation and sought out by the areas largest investors and development companies to provide insight as to current and future real estate values throughout the Las Vegas Valley.

Visit www.AppraisersofLasVegas.com to learn more.

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Something to think about this Halloween...

Ghoul Disclosure: Must Home Sellers Disclose Paranormal Activity?
Susan Funaro
Published on Legal Zoom Newsletter 10/25/07

As home seller, you dutifully check off the "to do" list your realtor suggests for a quick sale—curb appeal, leaky faucets fixed, termite reports, and oh, what about the other occupants? Do I have to mention them? This question brings new meaning to the saying, "Buyer Beware!" If the thought of buying a house isn't scary enough, does the buyer need to worry about checking for poltergeists along with old plumbing?

Although the wording may vary state to state, most real estate laws require sellers to disclose known problems with the house. This includes certain "material facts" such as structural concerns, the age of the roof and shingles, leaks in the foundation and walls, existing mold and mildew, and total square footage. Material facts can also include other items that affect the house's value such as the amount of property taxes, details about individuals who claim to have an interest in the house, or overlaps on adjacent properties.

Items not considered material facts include personal information about a seller, such as pending foreclosure or divorce, illnesses of the seller, or the seller's reasons for moving (uh oh!) What if the seller's reason for moving involves the paranormal? Remember the unhappy inhabitants in Poltergeist, The Amityville Horror, and The Others? Must a seller disclose whether their property is haunted? Or what if a heinous crime, murder, or suicide occurred on the property?

Death on a property may be material. In California, the Association of Realtors addressed the issue of death disclosure requirements. Civil Code §1710.2 states death on a property need not be disclosed if it occurred more than three years prior to the sale. The statute does require disclosure of a death more than three years old if the buyer asks. It does not state whether a death within three years must be disclosed, but many brokerage firms have Supplemental Disclosure Forms that specifically inquire about death. To avoid liability, it is recommended the seller disclose if a death occurred within the last three years, and let the buyer decide.[1] Some states have even gone further requiring home sellers to disclose "stigmas" attached to a property, which can include proximities to homeless shelters or whether it was scene to a violent crime.

In New York, a buyer sued the seller and the seller's realtor for failure to disclose the house's ghostly reputation. The seller even wrote about her bumps in the night with spirits for the local paper and Readers' Digest. However, many neighbors doubted the claims of the seller's spectral encounters, since the house was built in the 19th century and one of her spooks was anachronistically dressed in a Revolutionary War uniform. Although the court did not rule nondisclosure of the house's reputation as fraudulent, it did allow the buyer out of his contract and the return of his down payment. The house did eventually sell for $630,000 and several years later for $900,000.

According to a study by two business professors at Wright University, the supernatural stigma associated with houses where murder or suicide have occurred can take 50% longer to sell, and at an average of 2.4 percent less than comparable homes. Yet, a California appraiser, who specializes in diminution in value issues, says that a well publicized murder generally lowers selling price 15 to 35 percent.

Some homebuyers are not hindered by the macabre, especially if the gruesome past involves celebrities or legends. Indeed, ghosts can even be a selling point for some towns that rely on their dead inhabitants for tourist appeal. Cities like St. Augustine, New Orleans, and Hollywood all provide ghost tours of popular sighting sites. In St. Augustine, a legendary haunted house turned restaurant lures in diners with the prospect of seeing the house's former owner—a woman dressed in white who purportedly appears in mirrors and walks the second floor. Even homes that have witnessed notoriously grisly events have managed to sell. O. J. Simpson's home sold to an investment banker for about $4.7 million, and the Miami estate where Gianni Versace was murdered was auctioned for about $20 million.

Sellers should disclose grisly facts about the house, so they will not be "haunted" later. Even if not required by state law, in order to soothe the spirits of prospective buyers and avoid lawsuits, the seller should be upfront about their home's paranormal guests or ghoulish histories. In a sellers' market, ghosts tend to fade and may even disappear.

How Wall Street Stoked The Mortgage Meltdown

By Michael Hudson
From The Wall Street Journal Online

Email your comments to rjeditor@dowjones.com.
-- June 28, 2007

Twelve years ago, Lehman Brothers Holdings Inc. sent a vice president to California to check out First Alliance Mortgage Co. Lehman was thinking about tapping into First Alliance's lucrative business of making "subprime" home loans to consumers with sketchy credit.

The vice president, Eric Hibbert, wrote a memo describing First Alliance as a financial "sweat shop" specializing in "high pressure sales for people who are in a weak state." At First Alliance, he said, employees leave their "ethics at the door."

The big Wall Street investment bank decided First Alliance wasn't breaking any laws. Lehman went on to lend the mortgage company roughly $500 million and helped sell more than $700 million in bonds backed by First Alliance customers' loans. But First Alliance later collapsed. Lehman landed in court, where a federal jury found the firm helped First Alliance defraud customers.

Today, Lehman is a prime example of how Wall Street's money and expertise have helped transform subprime lending into a major force in the U.S. financial markets. Lehman says it is proud of its role in helping provide credit to consumers who might otherwise have been unable to buy a home, and proud of the controls it has brought to a sometimes-unruly business.

Now, however, that business is in deep trouble, and some consumer advocates and policy makers are pointing the finger at Wall Street.

Read whole article here.

'Subprime' Aftermath: Losing the Family Home

By Mark Whitehouse
From The Wall Street Journal Online

Email your comments to rjeditor@dowjones.com. -- May 31, 2007

For decades, the 5100 block of West Outer Drive in Detroit has been a model of middle-class home ownership, part of an urban enclave of well-kept Colonial residences and manicured lawns. But on a recent spring day, locals saw something disturbing: dandelions growing wild on several properties.

"When I see dandelions, I worry," says Sylvia Hollifield, an instructor at Michigan State University who has lived on the block for more than 20 years.

Ms. Hollifield's concern is well-founded. Her neighbors are losing interest in their lawns because they're losing their homes -- a result of the recent boom in "subprime" mortgage lending. Over the past several years, seven of the 26 households on the 5100 block have taken out subprime loans, typically aimed at folks with poor or patchy credit.

Some used the money to buy their houses. But most already owned their homes and used the proceeds to pay off credit cards, do renovations and maintain an appearance of middle-class fortitude amid a declining local economy. Three now face eviction because they couldn't meet rising monthly payments. Two more are showing signs of distress.

Read whole article here.

Midyear real-estate report says gains in home values abound

By HUBBLE SMITH

Sep. 04, 2007
Las Vegas Review-Journal

To hear people whine about the Las Vegas housing market, you'd think they were cats taking a bath.

Sure, home prices have receded from their all-time peak, which was just a year ago and followed a period of blistering appreciation. Las Vegas led the nation with quarterly appreciation of 40 percent and 50 percent in 2004.

Increased housing demand from mid-2003 through 2005 resulted in record numbers in both the new and resale home market, Coldwell Banker Premier Realty President Bob Hamrick said.

The market has backed off, but the gains remain, he said.

Nine ZIP codes in Las Vegas Valley with depreciating home values in 2006 show net gains of anywhere from 9 percent to 81 percent since 2003, according to a midyear report from Coldwell Banker Premier Realty.

One sample neighborhood gained 16 percent in 2003, 45 percent in 2004 and 13 percent in 2005, appreciating more in three years than it would have in 20 years by historical standards.

Before 1999, Las Vegas was among the slower U.S. housing markets with annual appreciation of 1 percent to 4 percent. That's what made it one of the best housing values in the nation. Homes in master-planned Summerlin were selling for $66 a square foot at a time when a comparable home in Phoenix was selling for $115 to $120 a square foot.

Giving back 1 percent last year is a drop in the bucket, Hamrick said.

"Few of us would pass on a stock market investment with a three-year return on investment of 73 percent," he said. "With the onslaught of negative press, many of us have forgotten about these record-breaking gains."

Read Full Article

Las Vegas Named #4 Top Renters Market by Forbes

Forbes Magazine named Las Vegas number 4 in Top Renters Market last month.

# 4 Las Vegas
The same issues of oversupply putting a burden on the Las Vegas housing market are plaguing the rental market. In the last year, according to NAR, rental vacancies have increased from 2.9% to 4.9%--transforming the market from one of the nation's tightest to one of the most overstocked. Rents in Class B and Class C housing grew slightly faster than did Class A units. Strong job creation figures suggest the supply gap will be gobbled up quickly, meaning now may be the best time to get in as a renter.

Read Full Article

Are Stated Income Loans Illegal in Nevada?

NO!A Letter From Our Mortgage Lending Division Commissioner
by Aaron Gordon

I have gotten a lot of calls in the last few weeks from very nervous real estate agents who have asked me if stated income loans will become illegal in Nevada as of October 1, 2007 when the new Nevada Lending Law goes into effect.

Others have told them that they will be illegal and they are panicked.

These agents are wondering if they need to start looking for other careers as stated income loans are so prevalent in our city due to the number of "tipped" employees we have.

The answer in "NO!" Stated income loans are not illegal and will not become illegal when Assembly Bill 440 (Nevada Lending Law) goes into effect on October 1, 2007.

In a letter dated, Thursday September 13, 2007 to all Mortgage Banker and Broker Licensees from Joseph L. Waltuch, Commissioner of the Mortgage Lending Division in Nevada, he confirmed this.

Here are some parts of his letter.

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EXCERPTS FROM THE LETTER FROM COMMISSIONER WALTUCH:

The Mortgage Lending Division (the "Division") has become aware that there exists some confusion amongst licensees regarding certain amendatory language to the new Nevada Lending Law.

Effective October 1, 2007 it will be an unfair lending practice for a lender to:

"(b) Knowingly or intentionally make a home loan, other than a reverse mortgage, to a borrower, including, without limitation, a low-document home loan, no-document home loan or stated-document home loan, without determining, using any commercially reasonable means or mechanism, that the borrower has the ability to repay the home loan."

Many licensees have expressed concern as to the meaning of "commercially reasonable means or mechanism" in the context of determining that the borrower has the ability to repay the home loan.

This does not prohibit specific mortgage products or types of documentation that may be utilized in the making or underwriting of home loans.

Read Full Article

New Steps to Help Homeowners Avoid Foreclosure

President Bush Announces Steps to Help American Families Keep Their Homes and Reform The Mortgage Finance System

THE WHITE HOUSE
Office of the Press Secretary

August 31, 2007
Content updated September 4, 2007

The Following Steps To Help American Families Keep Their Homes


1. The President Calls On Congress To Pass Federal Housing
Administration (FHA) Modernization Legislation.

The President's FHA modernization proposal would lower downpayment requirements, allow FHA to insure bigger loans, and give FHA more pricing flexibility. These reforms would empower FHA to reach more families that need help – first-time homebuyers, minorities, and those with low-to-moderate incomes – and offer more options to homeowners looking to refinance their existing mortgage.

The Administration Will Also Launch A New FHA Initiative Called "FHASecure." The President has asked Secretary Jackson to pursue important administrative changes to give FHA the flexibility to help more families stay in their homes during this time of transition in the mortgage market. The FHASecure program will help people who have good credit but who have not made all of their payments on time because of rising mortgage payments. For the first time, FHA will be able to offer many of these homeowners an option to refinance their existing mortgage so they can make their payments and keep their homes. FHA will also charge mortgage insurance premiums based on the individual risk of each loan, using traditional underwriting standards, so it can expand access and help even more families.

Since 1934, FHA Has Helped Close To 35 Million People Buy A Home And Stay In Their Home. FHA is a government agency that provides mortgage insurance to borrowers through a network of private sector lenders. It also offers options to homeowners looking to refinance their existing loan. The President's FHA modernization bill was first sent to the Hill in April 2006, and it passed the House last Congress with over 400 votes. The President has once again asked Congress to send him a clean FHA modernization bill as soon as possible so he can sign it into law.

2. The President Calls On Congress To Change A Key Housing Provision Of The Federal Tax Code So It Does Not Punish Families Who Are Forced To Sell Their Homes For Less Than Their Mortgage Is Worth.

Current tax law counts cancelled mortgage debt on primary residences as taxable income. For example, if the value of a home declines and $20,000 of the homeowner's loan is forgiven, the tax code treats that $20,000 as taxable income. The President proposes temporary relief to ensure that cancelled mortgage debt on a primary residence is not counted as income.

The President Is Working With Congress In A Bipartisan Fashion To Make This Important Change. Senator Debbie Stabenow (D-MI), along with Senator George Voinovich (R-OH) and others, has introduced a bipartisan bill that would protect homeowners from having to pay taxes on cancelled mortgage debt. In the House, Representatives Rob Andrews (D-NJ) and Ron Lewis (R-KY), along with several of their colleagues, have introduced similar legislation. The President looks forward to working with Congress to reach agreement on a bill, so we can deliver this vital tax relief to American homeowners.

3. The President Announced That The Administration Will Launch A New Foreclosure Avoidance Initiative To Help Struggling Homeowners Find A Way To Refinance.

Housing and Urban Development Secretary Alphonso Jackson and Treasury Secretary Henry Paulson will reach out to a wide variety of groups that offer foreclosure counseling and refinancing for American homeowners. These groups include community organizations like NeighborWorks, mortgage lenders and loan servicers, FHA, and Government-Sponsored Enterprises like Fannie Mae and Freddie Mac. The goal of this initiative is to expand mortgage financing options, identify homeowners before they face hardships, help them understand their financing options, and allow them to find a mortgage product that works for them.

The President Supports Actions To Protect Homeowners And Prevent These Problems From Happening Again

Read more here.