The house passed the bailout legislation today. The vote for passage of the Senate-amended bill was 263 to 171.
Remember that the Dow dropped over 700 points the last time they couldn’t get this bill passed and so today’s passage marks a possible turnaround for the economic slowdown we have been seeing.
Some of the major benefits we expect to start to see once implemented include:
- Once the Government purchases the mortgages from Banks they will have the flexibility that the banks DO NOT to modify loans which will help stem the surging foreclosures that we have been experiencing.
- Confidence will slowly return to wall street which will lead to lower 30 year interest rates spurring more home purchases
- Banks will have more liquidity and hopefully will be able to approve more credit worthy borrowers for new loans also decreasing the glut of housing on the market today.
These three major points will all with the underlying problems that at dragging down the economy. That is that there are too many homes available on the market and not enough qualified buyers to purchase them up. The rising foreclosure both adds to this as well as hurts the banks and their ability to lend.
We will keep you updated with the actual results as they become live as the bill goes into effect. Watch next week as we delve into the other major legislation that recently went into effect regarding the changes to FHA and the new HOPE initiative!
SOURCE: http://www.fivestarsmortgage.com/mortgage-articles/15/
Friday, October 3, 2008
House barely passes vote to move Bailout bill vote forward today
This is not encouraging news at all. Many house republicans have come out speaking optomistically about the passage of the legislation, but this vote to move forward with debate and vote today barely passed!
We are hoping that this is not a sign of the fate of the bill's vote today. Leaders have said that they would not bring the legislation for vote without having enough support to pass it, but the fact that President Bush and his VP have been placing frantic calls to the house Republicans to garner last minute votes is scary.
A decision by the House to amend the bill would delay enactment of the proposal because the Senate, which passed a bill late Wednesday night, would have to go back and vote again.
If House leaders at any point think they don't have the votes for passage, they could pull the bill from the floor rather than vote on it.
We as well as the rest of the country will be keeping a close eye on this afternoon's planned vote. Either we may very well be seeing the bottom of our financial crisis this week or... it was nice knowing you all. We stand ready to see where we go from here.
We are hoping that this is not a sign of the fate of the bill's vote today. Leaders have said that they would not bring the legislation for vote without having enough support to pass it, but the fact that President Bush and his VP have been placing frantic calls to the house Republicans to garner last minute votes is scary.
A decision by the House to amend the bill would delay enactment of the proposal because the Senate, which passed a bill late Wednesday night, would have to go back and vote again.
If House leaders at any point think they don't have the votes for passage, they could pull the bill from the floor rather than vote on it.
We as well as the rest of the country will be keeping a close eye on this afternoon's planned vote. Either we may very well be seeing the bottom of our financial crisis this week or... it was nice knowing you all. We stand ready to see where we go from here.
Wednesday, October 1, 2008
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