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Maybe this has some insight?

REF:

http://www.acorn.org/index.php?id=12364

Cite: (snip) ACORN continues to work closely with Congress on anti-predatory lending legislation, such as the Foreclosure Prevention Act of 2008. (snip)

Ref:

http://www.toacorn.com/news/2008/0918/business/065.html
Local Acorn Blog

Blog Site Explains Foreclosure Prevention Act

The new Foreclosure Prevention Act recently enacted is great news for current homeowners and those looking to purchase.The legislation, however, is complex.

LoanSmart Inc. has created a special blog dedicated to the Foreclosure Prevention Act, which explains in layman’s terms pertinent sections of the act.

“Not every consumer is going to read all 796 pages of this legislation. The blog cuts through the clutter and highlights relevant information pertaining foreclosures and purchasing a new home,” said Joe Engle, president of LoanSmart Inc.

Here are some of the key provisions:

•Homebuyer Tax Credit. Qualified buyers can receive a tax credit up to $7,500. The eligibility requirements are $75,000 annual income for single individuals and $150,000 annual income for married couples. The credit is like an interest-free loan and is repayable over 15 years on a payment schedule of $500 per year.

•FHA Reform. New permanent loan limits will be set at $625,500. Seller-funded down payment assisted programs will end Sept. 30 and the down payment requirement on FHA loans will go up to 3.5 percent from 3 percent.

•FHA Foreclosure Rescue. Development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85 percent of the current appraised value and qualified borrowers would get a new FHA 30year fixed mortgage at 90 percent of appraised. Borrower would have to share a portion of all future appreciation with FHA.

Engle said the new act should reduce foreclosures and motivate others to invest in a home.

For more information about the new Foreclosure Prevention Act call (805) 915-2600 or visit www.loansmartinc.com.