Yesterday, the House pushed through a three month closing extension
-closing-deadline of the homebuyer tax credit.
Tonight, the Senate unanimously approved the bill – leaving the
President to ratify the provision by signing it into law, as early as
tomorrow morning.
“I thank my colleagues for joining me to pass this important extension
and giving homebuyers in Nevada and around the country the opportunity
to purchase their first home,” said Sen Harry Reid (D-NV), in a
statement following the bill’s passage.
“In addition to helping thousands of families experience the American
dream, this successful and popular program provides a much needed boost
to Nevada’s housing market and economy.”
The deadline for the tax credit was midnight tonight but only if the
mortgage went through, so with Obama’s signature, it would have been
possible that no contracts currently under offer – but unable to close -
would fall through the cracks with the extended deadline.
The Senate approved provision will give buyers until Sept. 30 to
complete their purchases and qualify for tax credits of up to $8,000.
If the President signs the bill into law tomorrow, it is unclear if the
provision will apply retroactively to deals that close on Thursday, July
1.
House Approves Reform Bill; Senate Approves Extension of Flood
Insurance, Tax Credit
Sorohan, Mike
The House yesterday gave its final approval to sweeping financial
services reform legislation, while the Senate approved extensions of the
National Flood Insurance Program and a home buyer tax credit.
The House voted 237-192 to approve the final bill, known as the
Dodd-Frank Act, which cleared a House-Senate conference committee last
Friday. Three Republicans joined 234 Democrats in approving the bill; no
Republicans had voted for the bill when the House passed the original
bill in December.
“This bill got better at every stage of the process,” said House
Financial Services Committee Chairman Barney Frank, D-Mass., one of the
bill’s authors (with Senate Banking Committee Chairman Christopher Dodd,
D-Conn.). “I believe we have a piece of legislation that’s going to show
its merit.”
However, the Senate is not likely to vote on the bill until mid-July,
after centrist Senate Republicans objected to a $19 billion provision
inserted at the end of conference committee negotiations to offset the
bill’s costs. That objection, along with the death this of Sen. Robert
Byrd, D-W.Va., let Senate Majority Leader Harry Reid, D-Nev., to
postpone a final vote until mid-July.
The delay means the final bill will not reach President Obama’s desk
until after the Independence Day holiday, the symbolic deadline he had
given Congress to complete its work.
Obama will, however, see a bill extending the National Flood Insurance
Program reach his desk shortly. The Senate last night approved H.R.
5569, which extends authorization of the NFIP until Sept. 30. The House
had approved the bill earlier this week.
The action came following an intense lobbying campaign by the Mortgage
Bankers Association and other industry trade groups, which had expressed
frustration that Congress had allowed the NFIP to expire three times
this year, most recently in May. These expirations resulted in
suspension of the NFIP, placing thousands of homeowners in limbo.
Disruption of the NFIP has had significant implications for the housing
and commercial property industries. In a June 16 letter
enate%20coalition%20letter%20to%20reauthorize%20the%20NFIP.pdf> to
Congress, MBA and other trade groups noted that 5.5 million taxpayers
depend on the NFIP as their main source of protection against flooding,
the most common natural disaster in the United States. Without flood
insurance, no federally related mortgage loans could be made in nearly
20,000 communities nationwide.
The Senate, before adjourning, also approved H.R. 5623, the Homebuyer
Assistance and Improvement Act, which also cleared the House earlier.
The bill would give first-time home buyers until Sept. 30 to claim an
$8,000 tax credit if they bought a home before April 30; for current
homeowners, the credit is $6,500. The original period for claiming the
tax credit had expired yesterday (June 30).
The provision had been part of a larger bill that included an extension
of jobless benefits for people out of work more than six months. But the
tax credit bill was carved out of that broader bill after Senate
Democrats failed to get the 60 votes necessary to end a Republican
filibuster. Sen. George Voinovich, R-Ohio, objected to a denial of his
request to have part of the bill’s $34 billion cost paid with unspent
stimulus monies.
The MBAC 55th Annual Convention, “Navigating Through 2010 and Beyond”
August 21-23, 2010 at the Hilton Head Marriott Resort and Spa, Hilton
Head, SC is now open for registration.
Please CLICK HERE
mePage&msm=71f4e72f-a7e2-49ef-a6cb-743b58d5df63&cst=96988a8a-a2dd-4b74-8
39e-41a7abe77473&ent=e282c732-56ef-4c3d-9c62-73fc0a6582e1> to view the
schedule, sessions, speakers, sponsors and to register. There is also a
link on the web site to reserve your room.
See you in Hilton Head SOON!
(c) Copyright 2010 Mortgage Bankers Association of the Carolinas, Inc. |
www.mbac.org | 704-557-0204
Best Regards,
Corey Bauer
Retail Sales Manager
Wells Fargo Home Mortgage
M5609-011
7721 Six Forks Road, Suite 116
Raleigh, NC 27615
(Office: 919-841-5305
4 Fax: 866-709-6842
8* corey.d.bauer@wellsfargo.com
Apply Online @ www.cdbauer.com
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