Everyday 25,000 people die of hunger.......Please see this video which won top honors at a film festival for a short film
http://www.cultureunplugged.com/play/1081/Chicken-a-la-Carte
Thursday, April 9, 2009
Land Fight Underway In The City Of Colleyville
There's a land fight in going on in the City of Colleyville. People living along the well-traveled Cheek Sparger Road hope they can save what's left of several old trees in a vacant lot.
Neighbors complain a developer wants to turn the empty field at Jackson Road into retail space.
For years, the property in question has been zoned 'for residential use only'. Now a small yellow sign, which reads 'proposed zoning change', is creating quite a controversy.
"We've had that time to try to organize and stop the development," said Deryl Markgraf who lives next to the property. "All of this was completely thick with woods. You couldn't see anything. Couldn't see that house," Markgraf said as he pointed across the property.
The City of Colleyville has already cited the property owner and developer for illegally cutting several trees. Markgraf would like to see the property remain residential, but the new owner is asking the city to re-zone it for commercial and retail use.
If that happens, the plan calls for a two-story 10,000 square foot office space.
The idea of having the building nearby doesn't sit well with Markgraf. "We have, right down Cheek Sparger, one new development that has zero occupants. We have another that struggles to keep occupants. We don't need more office retail in our residential neighborhoods," he said.
Other neighbors, like Kathy Farrington, have other concerns. "If they put any sort of business there that's only going to increase our traffic problem," she said.
CBS 11 News spoke with the developer, Kulwant Atwal of Allen, who said the commercial office and retail space would improve the look of the neighborhood.
Markgraf admits the proposal is a classic case of 'not in my backyard'. "It is personal, there's no doubt about that. But it's also about the city. If it happened on the other side of Colleyville I'd feel the same way."
Monday night the Colleyville Planning and Zoning Commission will consider the proposed re-zoning. Neighbors from the area say they will be at the meeting to fight the proposal. Atwal says he will be in attendance as well, to answer any questions or concerns.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Neighbors complain a developer wants to turn the empty field at Jackson Road into retail space.
For years, the property in question has been zoned 'for residential use only'. Now a small yellow sign, which reads 'proposed zoning change', is creating quite a controversy.
"We've had that time to try to organize and stop the development," said Deryl Markgraf who lives next to the property. "All of this was completely thick with woods. You couldn't see anything. Couldn't see that house," Markgraf said as he pointed across the property.
The City of Colleyville has already cited the property owner and developer for illegally cutting several trees. Markgraf would like to see the property remain residential, but the new owner is asking the city to re-zone it for commercial and retail use.
If that happens, the plan calls for a two-story 10,000 square foot office space.
The idea of having the building nearby doesn't sit well with Markgraf. "We have, right down Cheek Sparger, one new development that has zero occupants. We have another that struggles to keep occupants. We don't need more office retail in our residential neighborhoods," he said.
Other neighbors, like Kathy Farrington, have other concerns. "If they put any sort of business there that's only going to increase our traffic problem," she said.
CBS 11 News spoke with the developer, Kulwant Atwal of Allen, who said the commercial office and retail space would improve the look of the neighborhood.
Markgraf admits the proposal is a classic case of 'not in my backyard'. "It is personal, there's no doubt about that. But it's also about the city. If it happened on the other side of Colleyville I'd feel the same way."
Monday night the Colleyville Planning and Zoning Commission will consider the proposed re-zoning. Neighbors from the area say they will be at the meeting to fight the proposal. Atwal says he will be in attendance as well, to answer any questions or concerns.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Friday, March 27, 2009
EARTH HOUR 2009 – A Global Event on Climate
On March 28, 2009
Earth Hour will demonstrate that by working together, each one of us can make a positive impact on this global issue. Governments, businesses, communities and individuals across the globe will participate in Earth Hour and pledge to make changes that will curb their greenhouse gas emissions. Turn off your lights from 8:30-9:30 p.m. local time on Saturday, March 28, 2009 During that hour replace your old light bulbs with energy-efficient compact fluorescent bulbs Commit to reducing your energy consumption in the year ahead.
Earth Hour will demonstrate that by working together, each one of us can make a positive impact on this global issue. Governments, businesses, communities and individuals across the globe will participate in Earth Hour and pledge to make changes that will curb their greenhouse gas emissions. Turn off your lights from 8:30-9:30 p.m. local time on Saturday, March 28, 2009 During that hour replace your old light bulbs with energy-efficient compact fluorescent bulbs Commit to reducing your energy consumption in the year ahead.
Tuesday, March 24, 2009
New $8000 Tax Credit for Home Buyers
Great news for first-time home buyers in 2009! The stimulus plan that President Obama signed into law contains a new $8,000 tax credit for qualified first-time home buyers. And, unlike the $7,500 tax credit from last year, this credit does NOT have to be repaid to the government, as long as you stay in the home for at least 36 months after the purchase date.
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer's modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate. Add to that this $8,000 gift from the government, and renting a home just doesn't make much sense.
If you or someone you know is ready to stop paying the landlord's mortgage and start building equity in your own home, give us a call. We'll run the numbers and see what makes sense for your individual financial needs.
Sincerely,
Lisa Warren
Silver Oak Mortgage
(817) 410-2518
lwarren@somlp.com
Remember, a tax credit is much more valuable than a tax deduction. A tax credit reduces dollar for dollar the amount of tax you owe. A deduction merely reduces the amount of your income that is taxable. This means the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.
Who?
First-time buyers or anyone who hasn't owned a home in the 3 years prior to a purchase of a primary residence may qualify for a tax credit of up to 10% of the purchase price or $8,000, whichever is less. To qualify for the full credit, the buyer's modified adjusted gross income must be less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. Partial credit is proportionally reduced for incomes under $95,000 (single) or $170,000 (married). For married taxpayers, the homeownership history of both the home buyer and his/her spouse are taken into account. This means if you or your spouse has owned a principal residence in the last 3 years, neither you nor your spouse qualifies for the credit.
What?
According to the IRS, a primary residence is the one you live in most of the time. It can be a house, houseboat, housetrailer, cooperative apartment, condominium, or other type of residence. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.
When?
The $8,000 tax credit is available for qualifying home purchases made from Jan. 1, 2009, until Dec. 1, 2009. This is not a typo. To receive the credit you must purchase a qualified home before December 1st, 2009 – not the end of the year.
How?
Unfortunately, you can NOT use the credit as a down payment. To receive the credit, you must purchase a qualified home first and then claim it on either your 2008 or 2009 taxes. If you make a qualified purchase after April 15, or after having already filed your 2008 taxes, you and your tax professional can submit an amendment to your return. To claim the credit, use form 5405.
Why?
The current combination of lower home prices and lower interest rates makes for an amazing opportunity to buy real estate. Add to that this $8,000 gift from the government, and renting a home just doesn't make much sense.
If you or someone you know is ready to stop paying the landlord's mortgage and start building equity in your own home, give us a call. We'll run the numbers and see what makes sense for your individual financial needs.
Sincerely,
Lisa Warren
Silver Oak Mortgage
(817) 410-2518
lwarren@somlp.com
Saturday, March 7, 2009
Energy vampires: Fact versus fiction
It's well-known that most electronic devices in our homes are sucking up energy even while they are turned off. But for all the information out there, many questions remain. I got hundreds of reader questions after writing the post What's wasting energy in your home right now. Below are answers to the five most common inquiries:
Which electronic devices waste the most energy when they are turned off but still plugged in?
Set-top cable boxes and digital video recorders are some of the biggest energy hogs. Unfortunately, there's little consumers can do since television shows can't be taped if boxes are unplugged. It also typically takes a long time to reboot boxes.
However, some of the other major consumers of standby power are more easily dealt with: computers, multifunction printers, flat-screen TVs, DVDs, VCRs, CD players, power tools, and hand-held vacuums. The Lawrence Berkeley National Laboratory (LBNL) measured standby power for a long list of products.
While it's true each individual product draws relatively little standby power, the LBNL says that when added together, standby power can amount to 10% of residential energy use.
Why do electronic devices use energy when they are switched off?
Electronics consume standby power for one of two reasons, says Chris Kielich of the Department of Energy. They either have an adapter that will continue to draw electricity, or they have devices (such as clocks and touchpads) that draw power. Anything with a remote control will also draw standby power, she says, since the device needs to be able to detect the remote when it's pushed.
Does everything suck energy when it's plugged in and turned off?
No. If your coffeemaker or toaster doesn't have a clock, then it's probably not using standby power, says Kielich. Chances are your hair dryer and lamps (although they may have a power adapter for the dimmer) are not drawing standby power either, she says. Devices with a switch that physically breaks the circuit don't consume standby power.
Will switching things on and off shorten their life?
Probably not, says Kielich. You'd have to turn devices on and off thousands of times to shorten their lives. The real downside, she says, to unplugging electronics is that clocks and remotes will not work, and you do have to reset everything.
Can you ruin batteries by unplugging battery chargers and causing batteries to completely discharge?
It could be a possibility, says Kielich. Her advice: Don't let batteries get completely drained. But you don't need to have things like hand-held power vacuums and drills plugged into the charger when it's 100% charged, or even 50% charged.
Power Strip FAQs
Plugging electronics into a power strip and turning it off when you're not using it is a widely prescribed solution for curbing vampire power. Here are answers to common questions:
Power strips draw energy when they are turned on, but not when they are switched off.
Any decent power strip should have surge protection, according to Kielich. Flicking your power strip on and off will not create a power surge capable of damaging electronic devices. In fact, it will protect devices from other surges.
Several readers were worried about the possibility of fires caused by plugging too many things in at once. If you plug in the allowed number of devices, then power strips are safe, says Kielich. Just don't plug your power strip into another power strip, or you run the risk of creating an overload.
Which electronic devices waste the most energy when they are turned off but still plugged in?
Set-top cable boxes and digital video recorders are some of the biggest energy hogs. Unfortunately, there's little consumers can do since television shows can't be taped if boxes are unplugged. It also typically takes a long time to reboot boxes.
However, some of the other major consumers of standby power are more easily dealt with: computers, multifunction printers, flat-screen TVs, DVDs, VCRs, CD players, power tools, and hand-held vacuums. The Lawrence Berkeley National Laboratory (LBNL) measured standby power for a long list of products.
While it's true each individual product draws relatively little standby power, the LBNL says that when added together, standby power can amount to 10% of residential energy use.
Why do electronic devices use energy when they are switched off?
Electronics consume standby power for one of two reasons, says Chris Kielich of the Department of Energy. They either have an adapter that will continue to draw electricity, or they have devices (such as clocks and touchpads) that draw power. Anything with a remote control will also draw standby power, she says, since the device needs to be able to detect the remote when it's pushed.
Does everything suck energy when it's plugged in and turned off?
No. If your coffeemaker or toaster doesn't have a clock, then it's probably not using standby power, says Kielich. Chances are your hair dryer and lamps (although they may have a power adapter for the dimmer) are not drawing standby power either, she says. Devices with a switch that physically breaks the circuit don't consume standby power.
Will switching things on and off shorten their life?
Probably not, says Kielich. You'd have to turn devices on and off thousands of times to shorten their lives. The real downside, she says, to unplugging electronics is that clocks and remotes will not work, and you do have to reset everything.
Can you ruin batteries by unplugging battery chargers and causing batteries to completely discharge?
It could be a possibility, says Kielich. Her advice: Don't let batteries get completely drained. But you don't need to have things like hand-held power vacuums and drills plugged into the charger when it's 100% charged, or even 50% charged.
Power Strip FAQs
Plugging electronics into a power strip and turning it off when you're not using it is a widely prescribed solution for curbing vampire power. Here are answers to common questions:
Power strips draw energy when they are turned on, but not when they are switched off.
Any decent power strip should have surge protection, according to Kielich. Flicking your power strip on and off will not create a power surge capable of damaging electronic devices. In fact, it will protect devices from other surges.
Several readers were worried about the possibility of fires caused by plugging too many things in at once. If you plug in the allowed number of devices, then power strips are safe, says Kielich. Just don't plug your power strip into another power strip, or you run the risk of creating an overload.
Friday, February 20, 2009
Final Score: $8,000 for Homebuyers
By Les Christie, CNNMoney.com staff writer
First-time purchasers get a tax credit windfall if they buy before December.
NEW YORK (CNNMoney.com)
There's a nice windfall for some homebuyers in the economic stimulus bill signed into law this week by President Obama. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision.
Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Housing bust is a boon: Dream homes are now affordable
10 easy ways to green your home
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers."[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB's Dietz.Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.
By Les Christie, CNNMoney.com staff writer
First-time purchasers get a tax credit windfall if they buy before December.
NEW YORK (CNNMoney.com)
There's a nice windfall for some homebuyers in the economic stimulus bill signed into law this week by President Obama. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision.
Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:
"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.
Housing bust is a boon: Dream homes are now affordable
10 easy ways to green your home
Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.
Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers."[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB's Dietz.Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.
Tuesday, February 10, 2009
Economic Stimulus Bill
A $15,000 homebuyer tax credit, higher loan limits for Fannie Mae, Freddie Mac and FHA, and government spending to lower mortgage rates are all in play as Congress and the Obama administration near agreement on an economic stimulus bill and financial stability plan for banks.
The Senate today approved an $838 billion economic stimulus bill that includes a $15,000 homebuyer tax credit, just hours after President Barack Obama's new Treasury secretary unveiled a multitrillion-dollar financial stability plan that includes $50 billion for foreclosure prevention programs.
The financial stability plan may also lead to an expansion of existing efforts by the Federal Reserve to drive down mortgage interest rates by buying mortgage-backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae.
The version of the economic stimulus bill passed by the Senate in a 61-37 vote relies less on government spending and more on tax cuts to kick-start the economy than the version passed by the House Jan. 28 (see story). Only two Republicans voted for the bill in the Senate -- Sen. Arlen Specter of Pennsylvania and Maine's Olympia Snowe -- and all 37 "no" votes were cast by members of the Grand Old Party.
Differences between the two versions of H.R. 1, the American Recovery and Reinvestment Act of 2009, must now be ironed out in a conference committee.
The House version of the bill would restore the upper limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs to $729,750 in high-cost housing markets, where they stood for much of 2008 before being reduced to $625,500 -- a step endorsed by many real estate industry groups.
The House version of H.R. 1 also contains another provision backed by the housing industry -- elimination of the repayment requirement on an existing $7,500 tax credit for first-time homebuyers that is scheduled to sunset on July 1. But the Senate version of H.R. 1 would go farther, increasing the tax credit to $15,000 and allowing all homebuyers purchasing a principal residence within a year of the bill's enactment to claim it on their 2008 or 2009 returns.
The National Association of Home Builders welcomed the Senate's move, saying a $15,000 tax break for all homebuyers could generate nearly 500,000 home sales and create more than 255,000 jobs.
NAHB Chairman Joe Robson said the enhanced tax credit would be "a powerful incentive for homebuyers to get off the sidelines" and urged Congress to make sure the full $15,000 tax credit is included in the final stimulus plan.
In a separate development, Treasury Secretary Timothy Geithner today released details of the Obama administration's new financial stability plan, a successor to the much maligned Troubled Asset Relief Program (TARP).
Geithner said the financial stability plan will include a comprehensive housing program that will provide $50 billion for foreclosure prevention programs. In order to persuade Congress to release the second half of $700 billion in TARP funding, the Obama administration had previously committed to spend $50 billion to $100 billion on a "sweeping effort" to address foreclosures (see story).
Geithner also alluded to a possible expansion of a $600 billion Federal Reserve program to drive down mortgage rates through the purchase of mortgage backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae (see story).
Further details of the housing program will be announced in coming weeks, Geithner said. According to a fact sheet issued by the Obama administration, the Treasury and Federal Reserve "remain committed to expand as necessary the current effort by the Federal Reserve to help drive down mortgage rates."
The housing program will also establish loan modification guidelines and standards for government and private programs, and require all institutions receiving assistance through the financial stability plan to participate in foreclosure mitigation plans. The Obama administration will also build additional flexibility into the FHA's Hope for Homeowners refinance program to enable more distressed borrowers to participate.
While the main goal of the stimulus bill is to create jobs, the financial stability plan is designed to strengthen banks and restart the flow of credit to homeowners and small businesses, Geithner said. Currently, the financial system is working against recovery, even as the recession puts greater pressure on banks, he said.
"This is a dangerous dynamic, and we need to arrest it," Geithner said. The battle for economic recovery must be fought on two fronts -- by jump-starting job creation and private investment, and by getting credit flowing again to businesses and families.
As it has done under the TARP program, the Treasury will continue to invest in banks that need additional capital, but will now impose conditions to ensure "every dollar of assistance" is used to generate additional lending, Geithner said.
In addition, the Treasury, Federal Reserve and Federal Deposit Insurance Corp. will establish a $500 billion Public-Private Investment Fund to buy up toxic loans and assets. The fund could ultimately provide up to $1 trillion in financing, Geithner said, helping to create a market for real estate-related assets that are "at the center of this crisis."
The Treasury and Federal Reserve will also commit up to $1 trillion in backing for a consumer and business lending initiative, building on the Federal Reserve's Term Asset Backed Securities Loan Facility (TALF) announced in November. The program will be expanded to target markets for small business lending, student loans, consumer and auto finance, and commercial mortgages.
The Senate today approved an $838 billion economic stimulus bill that includes a $15,000 homebuyer tax credit, just hours after President Barack Obama's new Treasury secretary unveiled a multitrillion-dollar financial stability plan that includes $50 billion for foreclosure prevention programs.
The financial stability plan may also lead to an expansion of existing efforts by the Federal Reserve to drive down mortgage interest rates by buying mortgage-backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae.
The version of the economic stimulus bill passed by the Senate in a 61-37 vote relies less on government spending and more on tax cuts to kick-start the economy than the version passed by the House Jan. 28 (see story). Only two Republicans voted for the bill in the Senate -- Sen. Arlen Specter of Pennsylvania and Maine's Olympia Snowe -- and all 37 "no" votes were cast by members of the Grand Old Party.
Differences between the two versions of H.R. 1, the American Recovery and Reinvestment Act of 2009, must now be ironed out in a conference committee.
The House version of the bill would restore the upper limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs to $729,750 in high-cost housing markets, where they stood for much of 2008 before being reduced to $625,500 -- a step endorsed by many real estate industry groups.
The House version of H.R. 1 also contains another provision backed by the housing industry -- elimination of the repayment requirement on an existing $7,500 tax credit for first-time homebuyers that is scheduled to sunset on July 1. But the Senate version of H.R. 1 would go farther, increasing the tax credit to $15,000 and allowing all homebuyers purchasing a principal residence within a year of the bill's enactment to claim it on their 2008 or 2009 returns.
The National Association of Home Builders welcomed the Senate's move, saying a $15,000 tax break for all homebuyers could generate nearly 500,000 home sales and create more than 255,000 jobs.
NAHB Chairman Joe Robson said the enhanced tax credit would be "a powerful incentive for homebuyers to get off the sidelines" and urged Congress to make sure the full $15,000 tax credit is included in the final stimulus plan.
In a separate development, Treasury Secretary Timothy Geithner today released details of the Obama administration's new financial stability plan, a successor to the much maligned Troubled Asset Relief Program (TARP).
Geithner said the financial stability plan will include a comprehensive housing program that will provide $50 billion for foreclosure prevention programs. In order to persuade Congress to release the second half of $700 billion in TARP funding, the Obama administration had previously committed to spend $50 billion to $100 billion on a "sweeping effort" to address foreclosures (see story).
Geithner also alluded to a possible expansion of a $600 billion Federal Reserve program to drive down mortgage rates through the purchase of mortgage backed securities and debt issued by Fannie Mae, Freddie Mac and Ginnie Mae (see story).
Further details of the housing program will be announced in coming weeks, Geithner said. According to a fact sheet issued by the Obama administration, the Treasury and Federal Reserve "remain committed to expand as necessary the current effort by the Federal Reserve to help drive down mortgage rates."
The housing program will also establish loan modification guidelines and standards for government and private programs, and require all institutions receiving assistance through the financial stability plan to participate in foreclosure mitigation plans. The Obama administration will also build additional flexibility into the FHA's Hope for Homeowners refinance program to enable more distressed borrowers to participate.
While the main goal of the stimulus bill is to create jobs, the financial stability plan is designed to strengthen banks and restart the flow of credit to homeowners and small businesses, Geithner said. Currently, the financial system is working against recovery, even as the recession puts greater pressure on banks, he said.
"This is a dangerous dynamic, and we need to arrest it," Geithner said. The battle for economic recovery must be fought on two fronts -- by jump-starting job creation and private investment, and by getting credit flowing again to businesses and families.
As it has done under the TARP program, the Treasury will continue to invest in banks that need additional capital, but will now impose conditions to ensure "every dollar of assistance" is used to generate additional lending, Geithner said.
In addition, the Treasury, Federal Reserve and Federal Deposit Insurance Corp. will establish a $500 billion Public-Private Investment Fund to buy up toxic loans and assets. The fund could ultimately provide up to $1 trillion in financing, Geithner said, helping to create a market for real estate-related assets that are "at the center of this crisis."
The Treasury and Federal Reserve will also commit up to $1 trillion in backing for a consumer and business lending initiative, building on the Federal Reserve's Term Asset Backed Securities Loan Facility (TALF) announced in November. The program will be expanded to target markets for small business lending, student loans, consumer and auto finance, and commercial mortgages.
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