Today in history....
US Naval Observatory was authorized by an act of Congress in 1842.
1st US men's single tennis championships 1881 in Newport, RI.
1st major earthquake recorded in eastern US, at Charleston SC, 110 die in 1886.
FDR signs an act prohibiting export of US arms to belligerents in 1935.
US National Guard assembles in 1940.
1st microwave TV station operated in Lufkin, Tx in 1955.
1st sun-powered automobile demonstrated, Chicago, Ill in 1955.
Malayasia (formerly Malaya) gains independence from Britain in 1957.
Former Teamsters' president Jimmy Hoffa reported missing in 1975.
Emily & William Harris plead guilty to 1974 kidnapping of Patty Hearst in 1978.
With the advent of the subprime market and more stringent controls in the mortgage industry, it was only a matter of time before more government-backed loans would be making a return. We are now seeing more FHA & VA loans. These loans went out of favor during the past several years because sellers had their choice of offers and didn't have to accept an FHA loan (which usually cost the seller more in closing costs) than a conventional loan.
As of tomorrow, Sept. 1, the VA will allow military veterans access to loans that exceed the present $417,000 loan limit thanks to Ginnie Mae, the Government National Mortgage Association. This will allow veterans to purchase homes in higher-cost areas, such as California, where the median home price is $568,000.
Now, FHA, another HUD agency which insures mortgages for low-income borrowers, may be allowed to guarantee mortgages for homeowners in default who are refinanced into lower-rate loans as well as also increase its limit to $417K if proposed legislation is passed.
Here's a link to a great article, U.S. faces deep economic downturn but recession unlikely, says Nobel laureate, Joseph Stiglitz . The long and short of it is that we are spending more than we are making and that holds true for us as well as our country. Joseph Stiglitz, a Nobel economics laureate, was quoted in this article stating that "... if it is not carefully managed, the fiscal consolidation will further depress the economy.”
Til next time... Marc It Sold!