July 14, 2013 by apicomely
It also goes in line with Sambas efforts to enable citizens to own their houses following easy methods, Al-Eissa said. The additional loan is given to those Saudis who are entitled to receive a housing loan of SR 500,000 from REDF. The REDF loan will be considered the first installment for purchasing a house while the bank will pay the full value of the house and the customer has to pay back the loan in monthly installments. The scheme covers various types of homes including villas, duplex and flats. This finance is provided to a customer only after he/she receiving a preliminary confirmation of REDF loan, the bank said.
Progress on Housing Finance Reform
The U.S. Mortgage Market Some background might be useful for readers unfamiliar with the workings of our convoluted housing finance system. Originators such as banks make loans, which Fannie and Freddie then buy and bundle into mortgage-backed securities with a guarantee against losses from homeowner defaults. The two firms then sell these securities to investors, now including the Federal Reserve as part of its quantitative easing program. Banks and other lenders like the arrangement because they can readily sell loans to Fannie and Freddie and get cash to lend to yet again. The setup benefits home buyers through the greater availability of financing and lower interest rates as American families effectively tap into global financial markets for their mortgages. There is a cost, however, borne by taxpayers. When the government took over the two firms in 2008, the Treasury Department promised to provide cash as needed to keep Fannie and Freddie afloat, effectively ensuring that the two firms $5 trillion in obligations will be honored (in addition to guarantees, that huge sum includes debt issued by the G.S.E.s to finance their own purchases of mortgage-backed securities).Investors had long believed that the government would support the firms in a pinch, a belief that gave the G.S.E.s an advantage over other financial firms.
Xinhua corrects China Finance minister’s growth target comment
Analysts had interpreted the original report as a signal that the government may be willing to tolerate economic growth in the second half of the year significantly below 7 percent. Markets showed muted reaction to the reported remarks on Friday. Some analysts suggested it was unlikely he was calling into question the official growth target of 7.5 percent set four months ago at the annual National People’s Congress (NPC), or parliament. China is due to report GDP for the latest April-June quarter on Monday. Economists polled by Reuters expect April-June GDP data to show the economy grew 7.5 percent from a year earlier, down from an annual pace of 7.7 percent in the first quarter.