In an attempt to hinder future economic crises, the House approved the Financial Overhaul Bill last week, according to the New York Times. It was the source of much debate and opposition from both sides and had been drafted over the course of the year. It passed 237 to 192.

The bill gives government regulators the authority to liquidate failing financial companies by breaking them apart, selling assets and forcing creditors and shareholders to take losses so that taxpayers do not pay the bill.

It also expands regulatory powers of the Fed, and establishes a risk council held by high-ranking officials led by the Treasury Secretary to detect potential threats to the financial and economic systems. It also creates a powerful new consumer bureau to protect consumers and prevent practices that may potentially lead to economic hardship. The Securities and Exchange Commission also gained new powers in fund regulations and credit rating agencies.

The measure restricts the ability of banks to invest and trade for their own accounts — a provision known as the Volcker Rule, for its proponent, the former Fed chairman, Paul A. Volcker — and creates a new regulatory framework for derivatives, the complex financial instruments that were at the heart of the 2008 crisis.

The bill comes with many changes to several areas:

• Mortgages
• Credit/Debit Cards
• Equity Indexed Annuities
• Fiduciary Duties
• Credit Scores

Find out what major changes you can expect from the mortgage industry.

The Financial Overhaul Bill comes during a global economic downturn and the worst financial crisis we have faced since the Great Depression. Oddly, the bill does not address the two government controlled mortgage giants Fannie Mae and Freddie Mac who recently de-listed their stock from the New York Stock Exchange because of their decreased value. Time will tell if new regulation is to come, but for now, these are the latest changes.

Congress Approves Financial Overhaul Bill is a post from: mesa-az-mortgage.com

According to the Arizona Republic, The federal goverment will give Arizona  almost $2 million to help in the fight against mortgage scammers over the next year. This federal money will be used toward the enforcement and prevention of scams that lead to the housing market collapse and also, current scam which are preventing the full recovery of the current housing market.

For all of these efforts, Arizona is receiving 1.7 million dollars from the federal goverment. As said in the Arizona Republic, the Phoenix metro area has been hit harder with mortgage scams than most areas in the country.  This is why Arizona is receiving a large portion of the federal  money allotted toward the interruption of current mortgage scams and the prevention of  any future scams.

Phoenix and the rest of the state, described by U.S. Attorney General Eric Holder as one of the national mortgage-fraud “epicenters,” is tagged to get almost a quarter of the nearly $8 million being distributed for the task in the federal government’s fiscal 2010 budget.

Holder made the announcement in Phoenix on Thursday at a mortgage-fraud summit held at U.S. District Court. Holder’s statement came after a string of appraisers, lenders, law-enforcement officials and others talked about errors that led to the housing bubble and possible ways to keep it from happening.

If you are currently looking for a mortgage, or struggling with one you already have,  there are many different scams still prevelent in the industry. Be aware of scam artist who target first time buyers or distressed home owners who are trying to sell or refinance their homes quickly.

There are resources available to people who wish to learn more about mortgage scams. Most importantly, is it important to thoroughly research any organization who offers you help with receiving a mortgage or adjusting a your current mortgage. If you wish to learn more about mortgage scams you can visit www.fbi.gov more information.

Federal Aid Given to Arizona to Help Fight Mortgage Scams is a post from: mesa-az-mortgage.com

The New York Times reports that even though analysts expected U.S. home sales to remain flat, there was an 8.2% increase from January to February suggesting that many homebuyers were taking advantage of the tax credit. Surprisingly, even in areas recently hit by storms the number of home sales rose in February.

Lawrence Yun, chief economist for the association, said the report “may signal the early stages of a second surge of home sales.”

“We need a second surge to meaningfully draw down inventory and definitively stabilize home values,” Mr. Yun said in a statement.

The large supply of foreclosed homes on the market at low prices have added to the appeal of some homeowners who may not have considered purchasing a new home.

This surprise increase in home sales provides refreshingly good news in the wake of a housing market that has been lying in a rut for several months and an increase in foreclosures.

“I don’t think we’re in for a further slump, but I think the recovery is going to be slow and painful,” said Michael Carliner, a visiting fellow at Harvard’s Joint Center for Housing Studies. “The risk that the bottom is going to come even further out of the market is easing.”

While there are now signs slowly emerging that suggest the housing market and the economy are on a gradual road to recovery, analysts agree that it is unclear exactly when we should be able to see a strong turnaround as there are so many varying factors involved.

With the tax credit set to expire on April 30, 2010 without plans of extension, it will be interesting to see how home sales fair in May and June of this year. Most economists believe that home sales will rise gradually, slowly picking up and move firmly higher in 2011.

If you’re considering using the first-time homebuyer tax credit, now is the time to get the ball rolling, and fast.

Home Sales See Significant Rise in February is a post from: mesa-az-mortgage.com

The Housing Rescue Plan , implemented to help ease the number of struggling homeowners, has added short-sale opportunities. The short-sale addition encourages delinquent borrowers who have not been helped by the loan modification program, and can provide documentation that they have done all they can to make their mortgage payments, in relieving them of their houses through a short sale (when the property is sold for less than half the mortgage owed) to prevent foreclosure.

Under the new short-sale program:

• the servicing bank will get $1,000
• $1,000 can go toward any second loans
• for the first time, homeowners will get $1,500 in relocation assistance
• Lenders will use real estate agents to determine home values. Homeowners will not have knowledge of this figure, but if any offer comes in that is equal to or higher than the value, the lender must take it.

The program provides potential for multiple benefits for all parties involved:

• Investment pools that own many home loans potentially get more money with a sale than a foreclosure.
• Borrowers likely suffer less credit damage while also getting the lender’s assurance that they will not be sued later on for any unpaid mortgage balance.
• And for communities, this means fewer empty foreclosed houses waiting to be sold which depresses the value of the property further pulling down the value of neighboring homes.

The new short-sale program is a stream-lined program that acts an alternative to foreclosure, but it is not simply an opportunity for homeowners to walk away from their houses without having exhausted other resources. Any short-sale must first be approved through the lender in order to qualify for this program. The program is still being fine-tuned with the possibility of further modifications in the coming months. It was initially announced November 30, 2009 and is set to take effect April 5, 2010.

Homeowners Paid for Short-Sale Under New Changes to Housing Rescue Plan is a post from: mesa-az-mortgage.com