Mortgage C.A.F.E.- Credit And Finance Expert

So to quote the legislative mess:

• Any privately provided downpayment assistance (as opposed to DPA provided through government sources) will not be available on or after October 1. So DPA through Nehemiah and comparable companies will no longer exist and any loan with such assistance will not close after October 1. It would appear that loans with DPA through state or federal agencies will continue to be acceptable but we won’t know until an announcement is made. I do know that Nehemiah has begun a program for massive reform by asking customers to contact their congressmen, but I do not expect this to be effective nor can be make any decision based on proposed actions.
• The legislation, in effect, refers to increasing the downpayment requirement on FHA loans from 3.00% to 3.50%. It would appear that this is also subject to October 1 deadline, but it is uncertain. It is also unclear whether the change is to the minimum required investment including closing costs or just a change in downpayment.
• Other provisions include issues such as affordable housing through tax credits for first-time homebuyers. We will not know how or whether this will affect any loan until we get an announcement from HUD or Fannie, etc.

That's the important items affecting the mortgage industry.  Now someone explain to me how in the world this type of legislation:

1) helps the mortgage industry

2) helps buyers get into homes, especially the foreclosed ones in a streamlined process

3) helps HUD, FNMA, FHHLC get out their predicaments?

Apparently, limiting the purchasing power of Americans, taking away the 3% required down payment that has worked for about my whole career for FHA is a GOOD IDEA coming down from our government.  To boot, it costs so many dollars to implement this legislation that we're about to tap into a magical 11 digit deficit which we've never hit before.  Your kids calculators can't even do the math here.  My mortgage calculator which is BUILT for big numbers, can't fathom the number. 

Now for the GOOD NEWS for my buyers and realtors.  People need to get out and BUY while the getting is good.  IF they want down payment assistance, time is of the essence.  WE CAN'T DELAY.