Federal Housing Administration now a growing player in the condo market

Federal Housing Administration now a growing player in the condo market
New Jersey Business News

O’Ryan Goring and his fiancée, Sarai Jones, fell in love with a castle-like Pennsylvania estate called Cairnwood as the perfect setting for their marriage. But they also fell in love with a condo in Ewing that would be the perfect starter home for the first-time homebuyers.

Using traditional mortgage products, they wouldn’t be able to have both, because they would have had to put $40,000 down to buy the condo. Lucky for them, the condo development, the Jefferson, had just received approval from the Federal Housing Administration — a prerequisite for buyers who want to use the government-insured financing program. The FHA program asked for just 3.5 percent down — or $7,000.

Mortgage rates approach all-time lows
Los Angeles Times

Mortgage rates sank near all-time lows this week, according to giant home-loan buyer Freddie Mac -- at least for those borrowers who have survived the recession with their credit ratings still solid and who are able to put 20% down.

For those lucky people, the average rate for a 30-year fixed-rate mortgage during the week ending Thursday was 4.94%, with borrowers paying 0.7% of the loan amount in upfront fees and points to the lender. (Paying points, each one equivalent to 1% of the loan, can reduce the interest rate on the mortgage.)

Housing construction rises in August
Delaware Online

WASHINGTON -- Construction spending rose unexpectedly in August on the biggest jump in housing activity in nearly 16 years, another sign the housing sector is mounting a recovery.

Meanwhile, aspiring home buyers rushed to take advantage of a tax credit for first-time owners that expires in November, driving up the number of signed sales contracts for the seventh straight month.

Bernanke Mutes Open Criticism Of Plan For New Consumer Fin'l Protection Body
Investor’s Business Daily

The White House's plan for a consumer financial protection agency cleared a big hurdle Thursday as its most visible opponent, Federal Reserve Chairman Ben Bernanke, dropped his open opposition.

Previously, Bernanke had sought to retain the Fed's responsibility to safeguard against unfair financial services products, arguing that risk assessment and consumer protection were closely related.

BofA to Pay $713 Million in TARP Dividends
Wall Street Journal

Bank of America Corp. will pay $713 million in dividends to the U.S. under the Troubled Asset Relief Program, which would boost its total dividend to the government in 2009 to about $2.54 billion.

The Treasury pumped $45 billion into the bank under the TARP program, which was meant to shore up the crisis-stricken financial sector. That included help regarding its year-end purchase of Merrill Lynch. The payments disclosed Friday will be made Nov. 16.