Well, it turns out both are going to become a reality as the Senate passed H.R.3548 – Worker, Homeownership, and Business Assistance Act of 2009 two days ago. The House passed their version in late September and just yesterday agreed to the Senate amendment to the bill (this is the “marrying” up part). The bill is on its way to the White House, if it hasn’t been signed already.

Homeownership Credits

The last homeownership stimulus bill created an $8,000 tax credit for first time homebuyers. In addition to adding a $6,500 tax credit, the income limits have been raised to $125,000 for individuals and $225,000 for couples. The current limits are $75,000 and $150,000. Finally, if you sell the home or it is no longer your primary residence within three years of purchase then you must repay the credit.

The homebuyer tax credits:

• $8,000 tax credit: If you are a first time homebuyer, you can get an $8,000 tax credit for purchasing a home. The claim deadline will be extended to April 30th, 2010, from the existing deadline of November 30th.
• $6,500 tax credit: If you already own a home and have lived in it for at least five of the last eight years, you can get a $6,500 tax credit for purchasing a home.

Unemployment Benefits

Unemployment benefits will be extended an extra 14 weeks for individuals who have already exhausted their benefits or will exhaust them before the end of the year. If you live in a state where the unemployment rate is above 8.5%, then you will receive an additional 20 weeks of benefits. According to the Bureau of Labor and Statistics, the following states have unemployment rates above 8.5%:

• MAINE – 8.5%
• IDAHO – 8.8%
• PENNSYLVANIA – 8.8%
• NEW YORK – 8.9%
• WEST VIRGINIA – 8.9%
• ARIZONA – 9.1%
• MISSISSIPPI – 9.2%
• MASSACHUSETTS – 9.3%
• WASHINGTON – 9.3%
• MISSOURI – 9.5%
• INDIANA – 9.6%
• NEW JERSEY – 9.8%
• GEORGIA – 10.1%
• OHIO – 10.1%
• ILLINOIS – 10.5%
• TENNESSEE – 10.5%
• ALABAMA – 10.7%
• NORTH CAROLINA – 10.8%
• KENTUCKY – 10.9%
• FLORIDA – 11.0%
• DISTRICT OF COLUMBIA – 11.4%
• OREGON – 11.5%
• SOUTH CAROLINA – 11.6%
• CALIFORNIA – 12.2%
• RHODE ISLAND – 13.0%
• NEVADA – 13.3%
• MICHIGAN – 15.3%

Business Assistance

If you’re wondering what the business assistance part of the Worker, Homeownership, and Business Assistance Act of 2009 is, even though it probably won’t affect you, you’ll be happy to learn that your local mom and pop store can deduct losses for 2008 and 2009 from profits in the five previous profitable years, increased from the last two years. Actually, any business can do this, not just “small” businesses.

How We’re Paying For This

For the fiscally conservative, you might be wondering how we’re going to pay for this. Extension of the homebuyer’s credit is going to cost around $11 billion and the business assistance will cost around $10.4 billion, according to the New York Times. Congress will pay for that portion of the bill by delaying a tax break for multinational corporations (it involves their worldwide interest expense), which will save around $20.1 billion. As for unemployment, otherwise known as jobless benefits, it will cost $2.4 billion and be paid by extending a $14/worker surcharge on employers into 2011 (which, by the way was created 30 years ago as a temporary measure… funny huh?).

(Photo: brapps)

Homebuyer Credit & Jobless Benefits Extended (H.R.3548) from personal finance blog Bargaineering.com.

The United States Mint is the agency in the United States Government responsible for the production of coins used in the US. It was created in 1792 by the Coinage Age of 1792 and put within the State Department. Later that year, the Mint opened its main branch in Philadelphia, PA and soon expanded to include several facilities across the United States. In 1799, with the Coinage Act of 1873, it was made an independent agency.

Mints & Mint Marks

There have been several Mint facilities in its history, there are only four active coin-producing mints today. The largest of them is the main office of the Mint in Philadelphia, PA. The current Philadelphia facility was opened in 1969. All coins, except the penny, created in Philadelphia after 1980 have a P mint mark, those created before had no mark. The engraving and design departments, as well as master die production for US coins, are located at the Philadelphia Mint.

The Denver Mint began in 1863 as a local assay office as a result of gold discoveries in the area. Assay offices test the purity of precious metals like gold. In 1906, the Mint opened a branch there and produces only circulation coins. Coins minted here bear the D mint mark.

The San Francisco Mint opened in 1854 much like Denver did, as an assay office to support the California gold rush. After numerous openings and closings, as a result of fluctuating coin demand, the Mint is now responsible primarily for proof coinage. Until 1868, the Philadelphia Mint was responsible for proof coinage before it was moved to San Francisco. Coins produced here bear an S mint mark.

The four branch is located in West Point and was granted official status as a branch of the Mint in 1988. It started as the West Point Bullion Depository, which opened in 1937, and produced pennies from 1973 to 1986. It was also responsible for producing many commemorative and proof coins, evidenced by a W mint mark. Today, it still holds gold bullion and is the only production facility for gold, silver, and platinum American Eagle coins.

Fort Knox is a Mint facility but produces no coins. Much like the West Point Bullion Depository, it’s primary function is to store gold and silver bullion reserves for the United States and other nations.

Mint Mark Recap

Here’s a quick recap of the four Mint marks and where the coins were produced. For coins in circulation, you’ll usually see a D or a P or no stamp. With no stamp, the coin is usually from Philadelphia unless it was a penny. In that case, there’s no way to tell whether it’s a Denver produced or Philadelphia produced coin.

• D – Denver Mint
• P – Philadelphia Mint
• S – San Francisco Mint
• W – West Point Mint

I think I’ve been on a trivia kick lately, after reading about the most valuable US coin and compiling a 50 fun facts about money.

(Photo: pagedooley)

The Mints of the United States from personal finance blog Bargaineering.com.

This article will cover the loan guaranty service offered by the United States Department of Veterans Affairs, also known as the VA home Loan program.

VA Loan Program History

The mission of the VA home loan program is to “to help veterans and active duty personnel purchase and retain homes in recognition of their service to the Nation. All veterans and other participants in the program will be treated in a courteous, responsive, and timely manner. We will endeavor to operate in the most efficient manner possible to minimize costs and ensure the best use of the taxpayer’s dollar.”

The program was created to help minimize the economic and socialogical problems of post-war readjustment following World War 2. It was created by the Servicemen’s Readjustment Act of 1944 as a loan guaranty program because it was cheaper than giving cash payments.

The logic behind the insurance program was that soldiers, especially in times of war, aren’t able to establish credit because they’re deployed in combat. The insurance would put them on even footing with their non-veteran citizen, who could build a credit history. If you’re curious about the full history of the VA program, you can read it here (it’s 28 pages long).

How the VA Loan Program Works

The program is a loan guaranty, like traditional private mortgage insurance, and it’s greatest appeal is that qualified individuals can get 100% financing of the sales price as long as they satisfy certain income or credit requirements. There is no limit to the maximum loan amount but lenders generally cap them because they resell the mortgages on the secondary market.

Cost of an VA Loan

The VA does not offer the loan, just the guarantee, so the rates and points can change from lender to lender. There isn’t a mortgage insurance premium each month, like with private mortgage insurance, but the VA charges an up front VA funding fee that can be financed. If you are eligible for a VA home loan, it’s best for you to request a bunch of quotes and compare the costs of each loan to one another.

In general, the decision is based on how much of a down payment you have. If you have less than 20%, a conventional mortgage will require a monthly private mortgage insurance payment that a VA mortgage wouldn’t require. Instead, the VA loan will have a “funding fee” that increases the size of the loan.

The funding fee is a percentage of the loan amount based on this schedule:

• 0% down payment: 2.15% of the loan amount for first time homebuyers
• 5% down payment: 1.50%
• 10% down payment: 1.25%

VA Loan Eligibility Requirements

If you are active duty or honorably discharged, chances are you are eligible. The VA only gives general rules of eligibility and they are:

• Served 181 days during peacetime (Active Duty)
• Served 90 days during war time (Active Duty)
• Served 6 years in the Reserves or National Guard
• You are the spouse of a service member who was killed in the line of duty, missing in action, or a prisoner of war.

Obtaining a Certificate of Eligibility: It is important that you obtain a Certificate of Eligibility for VA home loan benefits. You do this by completing the a VA Form 26-1880 and submitting it to the VA Eligibility Center with proof of service. The Certificate of Eligibility is important and you can also get it through your lender, who will use the ACE (Automated Certificate of Eligibility) system.

The Loan Process

In general, the whole process takes about five steps, outlined in greater detail at VA Home Loan Product page:

1. A veteran picks a home, the purchase and sales agreement will include a VA option clause that lets it be terminated should the veteran not be able to obtain a VA loan.
2. Contact a lender to apply for a loan. This includes all of the processing of eligibility, loan applications, and collection of supporting documents.
3. The lender processes the credit and income information and orders a VA appraisal of the property.
4. Lender collects the remaining information and underwrites (or rejects) the loan.
5. At close, if the loan satisfies VA regulations and guidelines then the transaction closes.

As you can see, the process is very much like a regular home sale process. If you want more help, I relied on the expertise of the VA Mortgage Loan Center and they should be able to help you out.

If anything on this page is incorrect, please let me know and I will correct it immediately!

(Photo: terren in Virginia)

Veterans Affairs VA Mortgage Loan Requirements Guide from personal finance blog Bargaineering.com.

If you’ve ever rented an apartment, you’ve left a deposit… but did you get that back before you left? They said they’d mail it… but did you actually get it? How about the utility company, did you get your deposit back from them? What about those six months you lived in another state, were you entitled to a state income tax refund? Did you actually get it? Unclaimed or abandoned property departments exist in every state and through free online searches you can find a ton of money you may have inadvertently left behind. I haven’t lived in enough places to have left behind any hard earned cash (I looked, no luck though) but you might have.

Below is a comprehensive list of every state’s (even D.C. and Puerto Rico) website that has a search for unclaimed property. Take a few minutes and see if you’ve discovered any cash and leave a comment if you do! I didn’t find any but perhaps you can find a nice fat check somewhere with your name on it.

Don’t pay for a service that finds unclaimed property, the information they use is publicly and freely available!

(Photo: amagill )

Searching For Your Unclaimed Money & Property from personal finance blog Bargaineering.com.

I think accountability is fundamental and I agree with many that the secrecy of the Fed, protected by the U.S. Code under 31 USC 714 – Sec. 714, is not in keeping with the transparency and openness we should require of our public officials (I understand the Fed technically only quasi-public, but for all intents and purposes it’s public in my mind). I understand it when we need to keep things hidden for purposes of national security but I don’t think this extends to national financial security.

Under normal circumstances, I don’t see it necessary for the Fed to disclose the contents of their FOMC meetings. This creates a problem for the attendees because if they are 100% forthcoming in their meetings, it could come back to haunt them. This might make the “official” meeting a joke and push true discussion behind closed doors.

However, during this economic crisis, the Fed has given trillions of dollars in loan guarantees and hasn’t disclosed what they got in return. This is a problem because it’s those trillions belong to you, me, and our children (and our children’s children!). As the dollar hits historic lows versus other currencies and faces the real threat of losing reserve status, the money we’ve earned is worth less and less because of these actions.

I don’t want to increase the bureaucracy in Washington but I think transparency, in this particular case, is crucial.

The Senate version of this bill is S. 604, cheerily named the Federal Reserve Sunshine Act of 2009, has 30 sponsors and was last referred to the Committee on Banking, Housing, and Urban Affairs back in March (this means it’s most likely dead in that form).

What do you think about this bill? Should the Fed be more transparent (at least to Congress)? Or are we wasting time and scrutinizing too much?

(Photo: epicharmus)

Federal Reserve Transparency Act of 2009 (HR 1207) from personal finance blog Bargaineering.com.

The current first time homebuyer credit is set to expire on December 1st, 2009. Schrader’s bill would do two crucial things:

• The program would be extended to October 1st, 2010,
• Homes purchased “after 2008,” rather than “in 2009″ would be elivible.

There is also one other change, you could treat the purchase of a home after December 31st, 2009 and before October 1st, 2010 as occurring on December 31st, 2009 for tax purposes. In other words, if you bought the house in 2010, you could take the credit on your 2009 tax return.

Don’t get too excited just yet, the bill was introduced on the 15th and was referred to the Committee on Ways and Means. Several bills just like this one have been introduced over the last few months and died in the Committee on Ways and Means (HR 1993, HR 2606, HR 2655, HR 2905… the list keeps going).

First Time Homebuyer Tax Credit Extension (HR 3842) from personal finance blog Bargaineering.com.

In normal times, unemployment benefits last twenty-six weeks after someone loses their job. In normal times, it takes newly unemployed people less than 26 weeks to find a job… until today. But we aren’t in normal times. According to data from the Bureau of Labor Statistics, this is the first time since 1948, when they started collecting this information, that the average time it takes to find a job is longer than the 26 weeks of state unemployment benefits.

The House of Representatives passed a bill last month (H.R. 3548) that would extend unemployment benefits in high-unemployment states by 13 weeks. The Senate is debating similar bills (S. 1699 was referred to committee) and the fight is over who gets benefits and how much.

S. 1699 would give an extra 13 weeks to states with unemployment rates higher than 8.5% funded by extending unemployment tax on employers.

These last few months emphasize how important it is to have an emergency fund. Standard unemployment benefits offer six months of income, if everyone had a six month emergency fund then it would matter less if the average time to find a job was longer than 26 weeks. People would still have money saved to pay for things.

Should we be taxing employers and giving the money to people without jobs? I’m not against helping people who are in trouble, we all should try to look out for each other, but this may be the wrong way to go about it. I think that companies they need to pay extra for the people they already hire, they probably will be hiring less. Fewer new jobs means longer employment periods and higher rates. Is this the right direction anyway?

Unemployment Benefits Extension Stalls in Senate from personal finance blog Bargaineering.com.

It exists and it’s a bill that has been introduced in the House of Representatives by Representative Thaddeus McCotter (R-MI). The Humanity and Pets Partnered Through the Years (HAPPY) Act, H.R. 3501, would offer a $3,500 tax deduction for qualified pet care expenses. A qualified pet is a “legally owned, domesticated, live animal” that isn’t used for research or business. Expenses cover pet products, service, veterinary visits, and basically anything that is related to the care of a pet.

It seems like a difficult time to be introducing this bill when we have so many other economic issues to deal with but it sure is sweet.

First reaction: Frivolous deficit spending? Or legitimate deduction we should entertain?

HAPPY Act: $3,500 Pet Care Expenses Deduction (Proposed) from personal finance blog Bargaineering.com.

Each month, you pay 6.2% of your paycheck into the OASDI program, up to a limit of $6,621.60 a year (the tax is only on the first $106,800 of earnings). Three months before your birthday, you will receive a Social Security Statement. This post will explain how to read and review that Social Security statement.

Are You Receiving It?

Roughly three months before your birthday, you should receive a pamphlet from the Social Security Administration titled “Your Social Security Statement.” My birthday was in mid-August, I received my statement dated May 7th. If you aren’t receiving your statement, you need to call 1-800-772-1213 and make sure your address on record is accurate. There are some pieces of sensitive information in the document such as your birthday, your name, former address, and the last four digits of your social security number. If you haven’t received it, you can request your statement from the SSA using this form.

Reviewing Your Estimated Benefits

Page 2 contains Your Estimated Benefits, which will outline how much of a benefit should you will receive based on current law. As you can see, there are four sections to the estimated benefits: retirement, disability, family/survivors, and medicare. Under each there is an outline of how much of a benefit you’d receive if you were to qualify right now. For example, this is what mine looks like at the moment:

Reviewing Your Earnings Record

Page 3 contains Your Earning Record, which lists every year in which you’ve had reported earnings for the purposes of Social Security and Medicare. Below that section is a smaller section listing how much they estimate you’ve paid into the Social Security and Medicare program. I didn’t take a scan of that section because it’s pretty basic. There wouldn’t be much to see after I cleared out the personalized data.

Red Flags to Look For

Here is the important part – double checking the different sections. You need to closely review Your Earnings Record (page 3) to ensure that the amount listed under the “Your Taxed Social Security Earnings” and “Your Taxed Medicare Earnings” is accurate. If you find that the SSA is inaccurate, you will want to call them at 1-800-772-1213.

If the numbers are too low, you could be shortchanged in retirement. It’s better to get it resolved now than when you retire. If the numbers are too high, it could be a signal that someone else is using your Social Security Number (if that is the case, I recommend requesting your government-mandated free credit report from AnnualCreditReport.com). It might seem like a good problem to have, seeing as how you could get more out of Social Security if you kept quiet, but if the person using your SSN illegally decides not to pay their taxes, you have to explain it. Accuracy is paramount in this case.

Reviewing the statement only takes a few moments and you never know what you’ll find!

How to Read Your Social Security Statement from personal finance blog Bargaineering.com.

One of these programs is the FHA, or Federal Housing Administration, mortgage insurance program. It’s part of the U.S. Department of Housing and Urban Development (HUD) and the FHA provides mortgage insurance on loans made by FHA-approved lenders. The logic behind the program is that low and moderate income families and first time homebuyers, especially in these economic times, may need a little extra help in the homeownership process. This help comes by way of an insurance program, that the borrowers will pay for at least five years of the loan, offered by the government.

About the FHA Program

The Federal Housing Administration was created in 1934 and was integrated into the Department of Housing and Urban Development’s Office of Housing in 1965. When the FHA was created, the economy looked a lot like it does today – “flat on its back” according to the website. While our economy today is still reeling, we certainly haven’t reached the depths seen in 1934.

According to the FHA website, the FHA program is entirely funded by its own revenue and uses no taxpayer funding. I think that’s pretty amazing, especially after the pain the housing industry has seen in recent years. To get an FHA loan, you will want to talk to an FHA lender and they can explain the whole program in much greater detail. I know the folks who run Mortgage Loan Place and they can help you out if you need it.

Cost of an FHA Loan

FHA loans offer rates that are comparable to conventional loans but are slightly more expensive because of the up front costs and the insurance component. The estimate is that the up front cost is 1.75% plus a 0.5% annual insurance premium, the FHA insurance, for at least five years. The 0.5% insurance fee goes away when you reach a loan-to-value of 78%. (Fortunately, FHA rules allow the seller to pay for closing costs up to 6% of the home’s appraised value).

The trade-off for added cost is that right now one of the easiest ways you can get a loan with only a little money down is with an FHA loan. With the credit crunch, most conventional loans will require at least 10% down before they’ll talk. It’s estimated that FHA loans make up 25% of the mortgage market.

FHA Mortgage Requirements

The FHA mortgage insurance program has a series of requirements you need to fulfill in order to qualify. The basic requirements are the same but the specific numbers will vary based on the lender and the state you’re in. I’ve included the most general figures here. If you are interested, it’s best you speak to an FHA approved lender to get the specific figures:

• Type of residence: The program covers single family homes, 2-unit, 3-unit, 4-unit properties, as well as condominiums.
• Maximum FHA mortgage loan limits: The amount of the mortgage loan must not exceed statutory limits, which you can look up on the HUD FHA mortgage limits page. FOr example, the limit for Howard County for a single family home is $560,000 as of February 2009.
• Minimal cash investment: One of the big benefits of the FHA program is that you can own a home with a minimal cash investment. The maximum loan-to-value ratio is 97%, meaning you may only need to put down 3% to qualify for an FHA insured loan.
• Income requirements: You must have at least two years of steady employment with increasing income, your mortgage payment may also not exceed 30% of your gross pre-tax income.
• Minimum FICO score: The borrower must have a minimum FICO score of between 580 and 620, depending on the lender, as well as less than two 30-day late payments. If you have a foreclosure or bankruptcy, it must be at least three (foreclosure) or two (bankruptcy) years old with perfect credit since.
• Appraisal requirement: Your future home will require a appraisal from a government-approved appraiser. Small problems, like a missing handrail, won’t be an issue but they will want larger systemic problems, like a leaky roof, will need to be repaired. FHA appraisals of a property are on record for 6 months.

If you’re looking for an FHA approved lender or just want a quote, I can recommend this tool from MortgageLoanPlace.

If anything on this page is incorrect, please let me know and I will correct it immediately!

(Photo: terren)

FHA Mortgage Loan Requirements Guide from personal finance blog Bargaineering.com.

The biggest difference between the two is eligibility based on financial need. Medicaid is designed to help low-income, financially needy individuals and is administered differently in each state. Medicare is not based on need and is entitlement based, through your payments into the program through your taxes. Medicare is administered nationally and the rules are the same everywhere.

If you’re curious to learn more, read on plucky adventurer because it starts getting a little more complicated.

Medicaid

Medicaid is an means-based assistance program managed by each state, with funds coming from both the state and federal budgets. For a state to receive funds, the state’s Medicaid program needs to conform to the guidelines set by the federal government. Medicaid was created in the Social Security Act of 1965, run by the Department of Health and Human Services, and administered at the state level. Participation is voluntary, but each state participates.

How Medicaid is funded: As a joint federal and state program, funds to operate the program come from both the federal and state governments.

Determining Medicaid eligibility: There are a number of requirements for Medicaid eligibility, with income being one of the primary requirements. From the Medicaid eligibility website:

Many groups of people are covered by Medicaid. Even within these groups, though, certain requirements must be met. These may include your age, whether you are pregnant, disabled, blind, or aged; your income and resources (like bank accounts, real property, or other items that can be sold for cash); and whether you are a U.S. citizen or a lawfully admitted immigrant. The rules for counting your income and resources vary from state to state and from group to group. There are special rules for those who live in nursing homes and for disabled children living at home.

Since Medicaid is a state run program, the scope of the coverage will vary from state to state, keeping in line with federal regulations. For specific information, I recommend you research your state’s program. Usually a google search of “[Your State] Medicaid” will get you on the right track.

Medicare

Medicare is a federally administered program, run by the Department of Health and Human Services, funded by payroll deductions (payments made from your paycheck). It’s a single-payer health care system, which is a buzz-word you have probably heard a lot lately. It was created by the Social Security Act of 1965, signed into law by President Lyndon Johnson. Back in 1965, the Medicare Part B premium cost $3 a month, in 2008 the premium was $45.50 per month.

The program has four parts:

• Part A: Hospital Insurance – covers inpatient overnight hospital stays, up to 100 days, with the cost being split between the Medicare program and the patient according to a schedule. It also includes coverage in a skilled nursing facility if you meed certain criteria.
• Part B: Medical Insurance – covers outpatient services and products not covered by Part A, such as x-rays, lab tests, vaccinations, etc. You can decline this optional coverage.
• Part C: Medicare Advantage – Sometimes called the HMO plan, this lets you receive your Medicare benefits through private health insurance rather than through Medicare Part A and Part B, as long as they exceed the standards set by Part A and B.
• Part A: Prescription Drug – This is the most recent addition to Medicare, added in 2006, and anyone eligible for Part A or B is eligible for Part D. Individuals with Medicare have to enroll in a Prescription Drug Plan (PDP) or a Medicare Advantage (Part C) that includes a prescription drug coverage. The PDPs are administered by private insurance companies and they choose which drugs they wish to cover, as long as they follow Medicare rules.

How Medicare is funded: If you ever look at a pay-stub, you might notice that a small part, 1.45% (2009), is taken out for Medicare. Your employer also pays 1.45%, on your behalf. If you’re self-employed, you pay both sides, for a total of 2.90% of your earnings.

Determining Medicare eligibility: It covers almost everyone 65 and older, some individuals who qualify for Social Security disability coverage, and some individuals with permanent kidney failure. There are more clearly defined rules for eligibility at the HHS.gov website.

For more information about Medicare, you can download or request free publications at HHS.gov. Here is the latest Medicare & You 2009 handbook, it’s a whopping 128 page booklet.

Summary

Hopefully this article has shed some light on these two programs and give you the basis for continuing your research.

Is there something I missed in this article that I should include? If so, let me know in the comments or by email and I will expand it as needed.

Medicare & Medicaid Health Insurance Programs Explained from personal finance blog Bargaineering.com.

Today, the Senate voted 90-5 in favor of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009, which is one step closer to credit card reform in America. In April, the House of Representatives passed a similar Credit Cardholders’ Bill of Rights Act of 2009 (357-to-70) and now the two chambers must reconcile the bills for President Obama to sign into law.

Here are the major parts of the Senate CARD Act:

• Credit card companies cannot raise interest rates on existing balances unless a card holder was 60 days behind.
• If a credit card company raises rates, six months of on-time payment would restore the interest rate to the previous level.
• Companies must notify consumers 45 days in advance of any rate increases.
• Companies cannot charge a late fee if they were late in processing a payment.
• Statements must be mailed 21 days before the payment due date.
• Rules were put in place that would make it harder for for companies to issue cards to those under 21.
• Interest rates cannot be increased within the first 12 months, promotional rates must be in place a minimum of 6 months.

The major points of the House’s Credit Cardholders’ Bill of Rights Act of 2009 are similar. The House’s version also requires promotional rates to remain in effect for a minimum of 6 months and other similarities regarding interest rate hikes and payment rules. There are additional rules in the House version that remain to be reconciled. For example, in the House bill, credit card companies must warn a customer if they get close to their credit limit.

It’s expected that the two bills will be reconciled and President Obama will be able to sign the bill into law before Memorial Day recess.

Credit Cardholders’ Bill of Rights Act of 2009 [Thomas.gov]
Credit CARD Act of 2009 [Thomas.gov]
Senate Passes Bill to Restrict Credit-Card Practices [New York Times]

Credit Card Reform Imminent: Senate Passes CARD Act of 2009 from personal finance blog Bargaineering.com.

This program, introduced by the Obama Administration as part of the Financial Stability Plan, is estimated to help 7 to 9 million people. They estimate the Home Affordable Refinance Program will help 4 to 5 million and the Home Affordable Modification Program will help 3 – 4 million. What this means is that you should act quickly if you want your application processed quickly. The longer you wait to apply, the larger the backlog will grow, so let’s get to the program!

What is the Making Home Affordable Program?

There are two parts to the program. The first is Home Affordable Refinancing, which helps borrowers refinance a loan backed by Fannie Mae or Freddie Mac. It’s designed for people who are current on their mortgages and are unable to refinance because the value of their home has fallen by too much. The second part of the program is Home Affordable Modification, which assists in the modification of a loan, rather than a refinance. It’s designed for people who are “struggling to make their monthly mortgage payments.”

Making Home Affordable Eligibility

Home Affordable Refinancing: The first rule is that your loan has to be backed by Fannie Mae or Freddie Mac, which you can confirm on their websites (Fannie Mae Loan Lookup, Freddie Mac Loan Lookup). If you’re uncomfortable looking it up online, you can call Fannie Mae at 1-800-7FANNIE and Freddie Mac at 1-800-FREDDIE, 8AM to 8PM Eastern Standard Time).

Next, use the government’s website to determine your eligibility by answering this 4-question qualification form. I can save you some time, if you answer NO to any of the four questions, you’re not eligible for Home Affordable Refinance.

Home Affordable Modification: You aren’t required to have your loan backed by Fannie Mae or Freddie Mac for Home Affordable Modification, so you can skip that step and go straight to the 5-question qualification form. Again I can save you some time, if you answer NO to any of the five questions, you don’t qualify.

I Qualify, Now What?

Call the bank or mortgage lender that owns your mortgage and ask them for the Home Mortgage Refinance or Modification program application. You’ll need the following (I’d call for the application and then start collecting this information):

• Information about your mortgage, such as your monthly mortgage statement and
• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
• Your most recent income tax return.
• Information about any second mortgage or home equity line of credit on the house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all your other debts such as student loans and car loans.

Are you looking to take advantage of this program?

(Photo: orvaratli)

Making Home Affordable Mortgage Refinance & Modification Program from personal finance blog Bargaineering.com.

The Obverse was designed by Joel Iskowitz, engraved by Phebe Hemphill, and has an image of Louis Braille, inventor of braille. The reverse was designed by Susan Gamble, engraved by Joseph Menna, and has an image of a child reading a book in Braille including the letter BRL, which is the abbreviation of the word Braille in Braille.

You can buy a proof silver dollar at the Mint for $37.95, which is the promotional price until April 27th. Regular price will be $41.95. They will only produce 400,000 of these coins.

Louis Braille Bicentennial Silver Dollar from personal finance blog Bargaineering.com.

The cost of the extension and modest increase is pegged at around $2-3 billion. Another key provision? The repayment requirement will be nixed. That means the $7,500 15-year loan at 0% interest will now become $8,000 cash money in your pocket. I believe existing borrowers would have that loan forgiven.

Home buyers who hoped for a $15,000 tax credit to buy a new home, as promised by the Senate, will be disappointed. A proposed $35 billion credit to support home sales was jettisoned in favor of a more modest $2 billion to $3 billion provision.

The proposal would eliminate the repayment requirement in an existing tax credit for first-time home buyers, and raise the credit to $8,000 from $7,500. Congressional aides cautioned Wednesday that the credit’s size was still subject to negotiation.

Congress Strikes $789 Billion Stimulus Deal [Wall Street Journal]

$8,000 First Time Homebuyer’s Credit from personal finance blog Bargaineering.com.