Deadline to Request Participation in New Housing Bond Programs Was Yesterday, OHCS Response Not Known.

On the state housing agency website for the new HFA bond programs recently announced by the Administration, I noticed two forms that HFA's had to submit by COB yesterday to request participation in these programs. (A link to one of the participation request forms with yesterday's deadline is HERE).

As far as I can tell these deadlines did not include any time for public notice or process in Oregon, and I have not had time to contact OHCS to ask whether they requested participation, and if so in what amounts for SF and what amounts for MF.

I will update if I make contact with OHCS and determine details on the amounts requested.

Note: Several days worth of questions and answers have also been posted on the NCSHA website for this initiative.

Originally created and posted on the Oregon Housing Blog.

State Homebuyer Tax Credit Programs Link Includes Idaho Program.

The National Council of State Housing Agencies has established a website listing state programs that provide loans to monetize the federal $8,000 first time home buyer tax credit.

Link is HERE; and is permanently listed in right pane as State Homebuyer Tax Credit Programs.

(Idaho appears to be the only NW state with such a program).

WSJ: HFA's Caught in Credit Crunch.

Story on State Housing Finance Agencies is HERE.

Discusses avoidance of market avoidance of bonds, problems with variable rate debt.

Two options I don't see mentioned in the story:

1. Ability of HFA's to securitize their loans into GNMA securities, with FHA insurance, and any positive impact that would have on bond rates once bond is wrapped with full faith and credit gurantee of federal government.
2. Ability to Use Mortgage Credit Certificate in lieu of bonds.

Tennessee Steps Up With New Subprime/ARM Refinance Program: Current Fixed Rate Interest is 6.1%.

While there are several state housing financing agencies with existing refinancing programs, those programs have NOT used the new federal legislative authority enacted this summer to use lower interest rate tax exempt revenue bonds to refinance subprime/ARM loans made from 2002-2007. (Additional bond cap was also allocated for this and other related housing uses).

I recently blogged about an Ohio bond issue that is expected to establish such a program.

I have now found a second program already in operation that is administered by the Tennessee Housing Development Agency (THDA).

Their program is called Great Save. The current interest rate is 6.1%, substantially below the refinance rates offered by other state housing finance agencies, and a significant savings to home buyers with qualified sub prime/ARM loans. Participating lenders include Bank of America, Countrywide, and Wells Fargo.

A one page summary is HERE and includes details on the various options used by THDA to demonstrate the financial hardship requirement of the federal legislation. (These Tennessee options have been designed to meet IRS guidance that requires a good faith determination by the bond issuer of financial hardship).

Outreach
More details HERE reveal that the Tennessee Housing Development Agency is planning to send letters to more than 22,500 ARM loan holders with moderately priced homes to let them know of the new program; to date more than 9,800 letters have already been sent.

Kudos to THDA leadership and staff for getting their program operational within 60 days of enactment of the summer federal housing legislation, and for making such a concerted outreach effort to help families reduce their monthly housing expenses to affordable levels and thus help avoid potential future defaults and foreclosures.