H.R.3548 Home Buyer Tax Credit Extended and Revised

The First Time Home buyer Tax Credit was Extended by the President in Novemver of 2009.  This is not breaking news by any means.  However, there is a lot of confusion by consumers and lenders.  I guess the confusion is because H.R. 3548 was also revised or change to include current home owners.

I have the facts listed below along with points of confusion and creative thoughts you may want to avoid.

• The bill extends the present $8,000 tax credit (up to 10% of purchase price) for first-time home buyers through April 30, 2010.  A first time home buyer is one that has not owned a home in the last 3 years.
• The bill has been revised to allow Current homeowners a $6,500 tax credit (up to 10% of purchase price) through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.
• The April 30th deadline is very confusing for some. If the potential home buyers have a binding contract on or before April 30th, they will have until July 1st to close the transaction.
• Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples.
• The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.
• Home types include: single family home, condos, town homes, mobile homes, house boats and co-ops.
• The tax credit is not a deduction. The refund is paid to you in excess of taxes owed.
• There is no repayment required as long as you live in your new home for a minimum of 3 years.
• The HUD-1 or settlement statement/statements must be submitted with your tax return. (form 5405)
• This is important, ... you must by 18 years or older and NOT be claimed as a dependent by another tax payer.
• Don't get bitten by this provision. Your purchase CANNOT BE from a fimily member such as parents, children, siblings, or spouse.

Sounds simple doesn't it?  Maybe not so much..  I caution you not to wait till the last minute.  Most lenders do take two to three months to close a loan right now.

Good Luck.

Fingerprinting Loan Originators

Let's fingerprint all Loan Originators, Mortgage employees and Real Estate Agents. Yep, that's the ticket. ... God Help Us! This was slipped into a the foreclosure assistance bill, and hidden in the "manager's amendment", and passed by the Senate Banking Committee.

Here are a few quotes from the article that came from "OpenMarket.org" and posted by John Berlau.

"a federal fingerprint registry totally unrelated to national security passed a U.S. Senate committee almost without notice. The legislation would require thousands of individuals working even tangentially in the mortgage and real estate industries — and not suspected of anything — to send their prints to the feds. The database and fingerprint mandates were tucked into housing and foreclosure assistance bills that on Tuesday passed the Senate Banking Committee by a vote of 19-2. "

What, ??? so fingerprinting the mortgage industry is going to fix, or would have prevented the problems we have now? Where did these idiots come from. Did we really elect them? What is their real agenda, surely they are not ignorant enough to think this will fix anything!? Here is another quote.

"The measure the committee passed states that “an individual may not engage in
the business of a loan originator without first … obtaining a unique identifier.” To obtain this “identifier,” an individual is required to “furnish” to the newly created Nationwide Mortgage Licensing System and Registry “information concerning the applicant’s identity, including fingerprints for submission” to the FBI and other government agencies."

"The fingerprint provisions are contained in a “manager’s amendment” that was hammered out by committee Chairman Chris Dodd, D-Conn, and Ranking Member Richard Shelby, R-Ala., on Monday and attached the next day to a broader housing bailout bill that had been scheduled for a committee vote. That bill, the “Federal Housing Finance Regulatory Reform Act of 2008,” expands the lending authority of the Federal Housing Administration and the government-sponsored enterprises Fannie Mae and Freddie Mac to refinance the mortgages of troubled borrowers and banks."

"The amendment defines “loan originator” as anyone who “takes a residential loan
application; and offers or negotiates terms of a residential mortgage loan for compensation or gain. It states that even real estate brokers would be covered if they receive any compensation from lenders or mortgage brokers. "

I want you to know that I try to stay neutral about political issues in my blog. I'm not always successful but I really do try. This morning I read this article on the Drudge Report and I am totally outraged. I cannot contain myself. I don't think it matters which party you affiliate yourself with, you should be stunned by this too.

The bill claims justification for this provision as: “increased accountability and tracking of loan originators,” “enhanced consumer protection,” and “facilitating responsible behavior in the subprime mortgage market.” ... Hey, they got this right. All mortgage people and real estate agents are sneaking around and far from trust worthy. They should all be put into a mandatory parole program and should have to check in every week, and provide urine for drug tests. How about an ankle bracelet too! ... "Book em Dan-O"

What has happened to us? The People we have elected and put our trust in are totally out of control. They feel and display no accountability or respect for us or the constitution. And We pay them money to do this to us!

We have to wake up.. I am so angry I can't get my thoughts in order but I wanted to get this out to you. I'll blog more about it after I cool off a little. In the mean time go read the article here, then come back and leave some comments. I need to know if I'm the only person that finds this troubling.