Question: Hi John, What do you know about the USDA Rural Housing funds being replenished? – Cheryl
Hi Cheryl,
The reason that you haven’t got any clarity on USDA funds is probably because the waters that Bills swim in are rather murky.
There is a Senate Bill (S. 3266), sponsored by Sen. Michael Bennet and 14 other Senators. The bill is currently attached to HR 4899, the Disaster Relief and Summer Jobs Act of 2010. S. 3266 will replenish the USDA Guaranteed Loan Program, which currently is out of money. The Bill is up for consideration today in the Senate. Many folks are suggesting that they bring a separate vote up so the Bill can be considered on its own merit, not w/ the other provisions in HR 4899.
And this is where it gets murky. There are differing opinions on what will happen next: (1) It will then go back to the House Friday for review of the changes that will be made to it or (2) the Bill will go to Senate conference committee. In the case of the Bill going to conference committee, the USDA will then start releasing funds.
This is pretty bad timing for all those folks trying to get the FTHB tax credit and close by June 30th. Hopefully the politicos will be mindful of this and expedite this Bill.
Maybe some wise political adviser can help us out and comment on what they know.
Has anything happened an this bill? Thanks for all your help.
Carl
Hi Carl,
The Senate has set a goal of Friday 5/28 in order to vote, and hopefully approve, HR 4899. With any luck, the Senate will approve some version of this bill with additional USDA funding by Friday 5/28, after which they are in recess until 6/7 for the Memorial holiday. The House will have to vote on this legislation too. They will also be in recess after this week until 6/7.
Do we hear anything about re-funding USDA? We have folks hanging on, trying to buy homes using USDA.
Hi Michele,
Thank you for your question. It appears the House of Representatives did pass H.R. 4899 7/6/10, although they did not pass all of the amendments proposed by the Senate. Therefore, it will go back to the Senate for discussion – they are out until 7/12/10.
Here’s my question Michele: Why are you working with lenders that aren’t funding through on the USDA loans? At Vitek Mortgage Group, where I work, we are a direct lender and are funding USDA loans even though Congress and the Senate have not acted quickly. We are confident in obtaining the funding and confident in the market – that is why we continue to fund USDA loans.
My name is John Easterbrook and I would be happy to help you directly or put you in touch with someone in your area that can. My phone number is 916-224-7653.