Something tells me that the Fed and the Treasury are not on the greatest terms these days. Technically the Fed has the right to be repaid for its Treasury debt, but in practice it has always rolled it over. If it doesn’t, Treasury has no option but to go to the open market to roll over the debt, at the penalty of higher interest (interest paid to the Fed is essentially zero).

The Fed is seriously deluding itself if it thinks it’s being less inflationary to do it this way — keeping the monetary base constant by rolling off Treasury debt to balance the TAF injections. It’s using the power of the Treasury to bid up the price of an asset nobody else wants. If that’s not inflationary, what is?

Im begging yah, do a story on this crap!

On Sept. 18, the House, by a bipartisan 348-72 vote, approved the Expanding American Homeownership Act of 2007 (H.R. 1852), which would create 40-year FHA-insured mortgages, institute risk-based premiums, allow zero down payments for first-time borrowers and lift the cap on Home Equity Conversion Mortgages (HECMs).

Thats 40 year mortgage with zero down and its racing into the Senate….dah!

FHA Reforms
NAR successfully lobbied for the passage of H.R. 1852, the Expanding American Homeownership Act of 2007, which helps modernize FHA by expanding the availability of safe and affordable FHA-backed loans for purchases and refinances. The bill includes provisions to eliminate the 3% down payment requirement, increase loan limits up to 175% of the conforming limit in high-cost areas, streamline condominium purchases, and eliminate the cap on Home Equity Conversion mortgages (HECMs). The Senate Banking Committee passed a similar bill. The Senate bill is expected on the floor by the end of the year.

Freddie Mac/Fannie Mae Reform
NAR also successfully lobbied for passage of H.R. 1427, the Federal Housing Financing Reform Act of 2007, which overhauls the regulatory structure of the nation’s housing finance government-sponsored enterprises (GSEs). H.R. 1427 provides for regional adjustments to the caps on mortgages the GSEs may buy for high-cost areas, helping more working families qualify for safer GSE loans. The House passed H.R. 1427, 313-104. The Senate has taken no action to date.

FRAUD, CORRUPTION & COLLUSION!

Colonial’s debt ratio is one of the highest in the Spanish real estate sector, representing 77 percent of assets, compared with a 45-50 percent average in the European real estate sector, according to Banesto bank.
A squeeze on global market liquidity, a cooling property market and rising interest rates have conspired to make it more difficult for Spanish property developers to service their debt.