Stimulus Is Dead In The Water

Any realtor could tell you that the $8,000 federal tax credit for new home purchases is now over, but the closing deadline for the stimulus is June 30th. Many were hoping and lobbying that the stimulus bill be extended and there was a lot of momentum in Washington to pull it off, but the extension is now dead in the water.

Any realtor or loan originator who has spent any time in the market over the last year will tell you that the industry has been dramatically changed. You will rarely see or hear about a loan that closes in 15 or even 30 days. Between new federal guidelines and backed-up underwriting departments, things just take a lot longer.

And therein lies the problem for the hundreds of thousands of borrowers who are currently trying to close on a loan, but have not as of yet. They have until June 30th, and then the stimulus is gone. There are Whisperings of passing another bill to extend the closing deadline and to make it retroactive, but nothing concrete has been announced. This is definitely something we will stay on top of.