patrick.net

I was wondering when the new increased cost of FHA loans would affect the current market conditions and decided to check what is going on on coming regulations and ended up at realtoractioncenter.com

NAR wants the federal government to keep a presence in the market out of a concern that mortgages remain available and affordable even in bad markets, when it’s too risky or not profitable enough for purely private participants to be counted on.

Sen. Johnny Isakson (R-Ga.) also has a bill out that matches up with NAR aims in many respects, and the association is working with the senator and his staff to refine his approach this spring. In a key point about his bill, it would define conforming loans as those that are based on sound underwriting, not on the amount of downpayment.

That’s important, because banking regulators have drafted Wall Street reform rules that would define conforming loans—what they call qualified residential mortgages (QRM)—as those that meet minimum downpayment requirements and other standards. NAR and others have been vocal about how bad that would be for the market, and the Isakson bill would address that.

http://speakingofrealestate.blogs.realtor.org/2012/01/17/watch-carefully-as-lawmakers-talk-fannie-freddie-reform-this-spring/

hmm, they already "educated Congress" and helped them to restore FHA loan limits up to a maximum of $729,750 in the highest cost markets back in November 2011:

In late September the FHA and Fannie/Freddie Loan Limits were reduced in 42 states pricing potential home buyers out of the American Dream of home ownership and holding back the housing recovery. NAR immediately went to work with the goal to get the loan limits restored in Congress. For weeks that goal seemed unlikely. You, and countless other REALTORS® like you along with NAR leadership and your Government Affairs team in D.C. worked to educate Congress that well-qualified buyers didn't need yet another hurdle to access affordable mortgage financing.

http://www.crescentcitycondos.com/articles-and-info/304-congress-restores-fha-loan-limits.html

Well, that wasn't good enough for them, now they are trying to help to loosen lending standarts once again. To me its more like destroying "American Dream" once again rather than protecting it.

Just wonder how many of you think there will be another wave of mortgage crisis and how soon?

#housing