Oregon Mortgages

The Schumer Bill

This is a bill that is being introduced by Senator Bill Schumer who is a Democrat from NY. The bill would lift the caps on Frannie and Freddie by 10% to allow them to help buy more loans during the “credit crunch.” If accepted then it would allow Freddie and Fannie to pump another $145 Billion into purchasing mortgages. It would also allow them to purchase “Jumbo” loans which are loans over $417,000, this would allow them to help people in areas with more expensive housing. The bill itself would also push $72.5 Billion for to help refinance borrowers who’s loans are currently adjusting to higher rates or about to adjust.

The Bush Admin as well as the OFHEO (the governing bodies of Freddie and Fannie) have rejected proposals previously so I’d assume we’ll see some negotiations go on.. This could definitely help ease some tension on the market as well as borrowers so we’ll see what happens!