From our Potomac Partners:
We would like to update you on the following:
 
Extension of the Higher Temporary Mortgage Limits Has Been Passed
The higher mortgage limits have been passed and are on the way to President for signature.   The net effect would be that the mortgage limits would remain at the same level today through 2010.  They could, of course, increase in areas supported by higher house prices.
 
Tax Credit Proposal Could Be Finalized Next week
 
The tax credit proposal has been included in the unemployment extension bill.  This is a very positive step since it is virtually guaranteed that unemployment benefits will be extended. At the bottom of this email is a full summary of the Emergency Unemployment Compensation Extension Act.  (See bold in particular.)  We understand that it will be considered by the Senate early this week. The provision would still have to be passed by the House. 

Below are the details of the new tax credit program.
· First-time homebuyers will continue at $8,000
· Tax credit for “move up” purchasers will be up to $6,500
oMust have used previous home as a principal residence for 5 of the 8 previous years.
· Income limits increased and are the same for first-time and “move up” purchasers: $125,000 for single filers/ $225,000 for joint filers
· Limitation on eligible home prices has been increased to $800,000
· Time Frame:December 1, 2009 to April 30, 2010 plus 60 day extension if binding contract is in place by April 30, 2010
· Anti-fraud measures have been added

Here's the Link to the Unemployment Bill: Click Here:

The ever controversial 1st Time Home Buyer Tax Credit is now back on the burner for an extension through June of 2010 (maybe longer?).
Many in the Economic Community think this $8k *deal* was a colossal waste of an actual $43k per sale (the argument is here:)
There are others that are in love with the $8k credit because it has helped more than a few of their customers to purchase this year (even if it was just to pay back the bank of mom and dad).
Certainly there's been a mad rush on a national basis to capture what might be the end of the tax credit and close escrow before 12-1-09 (with Thanksgiving right there in the middle!).
Of course the Realtors are selling the tax credit like crazy with a HUGE prime time AD push in the last couple of months, and of course NAHB is advocating for the assistance as well (Nationally $8k credit is = to 4+% of the median home price which has fallen well below the $200k barrier these last two years).
I personally don't like my tax dollars spent un-neccessarily but at the end of the day I am in conflict with a program that without a doubt is helping to feed my family and yours.
 FHA anyone?

Speaking of FHA and HUD..
You remember a couple of months ago HUD was pushing Condo project approvals approvals back on to the Mortgagees (that would be us Wholesale Lenders et al.)
and eliminating Spot approvals come October?
Well, for the second time in a row last week HUD (delayed) moved to allow Spot approvals until December 7th, 2009.  I suspect they may allow Spot approvals until February of 2010 or later (we'll see if they can actually release an ML to this effect by early November).

Official HUD announcement posted below (from 10-23)
FHA notice on delay in FHA condominium changes:
 
Implementation of FHA's new policy guidance for condominium project approval and condo unit financing will be delayed until December 7th  2009.  The new guidance, to be issued within the next two weeks, will:
1) offer additional leniency's to address the difficult market conditions and
2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification. 
 
Until the new guidance takes effect on December 7th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41.  Further, the site condo and manufactured housing condo project changes that have already been implemented are not affected by this delay.
 
To read FHA Mortgagee Letters 1996-41 and 2009-19 please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/