Point Asset Management, Inc.Pittsburgh, PA, United States (NYSE: PNT Proposed)

Financial System Bailout Plan Becomes Law - After two weeks of fierce debate on Capitol Hill, a $700 billion financial system bailout package has been signed into law. The plan attacks the US credit crisis by allowing financial institutions to sell their troubled (mostly mortgage-related) assets to the federal government. The plan also, among other actions, curbs executive pay for companies selling assets to or buying insurance from the federal government, sets up two financial industry oversight committees, extends tax breaks to individuals and businesses, temporarily raises the FDIC insurance cap on bank deposits, and mitigates home foreclosures.

Home Sales Down, Despite Declining Prices - Existing home sales, including single family, townhomes, and condos, were 13.2 percent lower in July 2008 compared to July 2007, according to the National Association of Realtors (NAR). The national median existing home price for all housing types was $212,400 in July 2008, down 7.1 percent from a year ago. The recently enacted housing stimulus package, which gives homebuyers improved financing terms and incentives, coupled with the inventory currently on the market, is hoped to spark a sustained upward sales trend in the months ahead.

Recovery Act Intends to Stimulate Housing Market - The Housing and Economic Recovery Act of 2008, signed into law late July 2008, includes several initiatives the Mortgage Bankers Association has long advocated, including reform of government sponsored enterprises (GSEs) and regulation and modernization of the Federal Housing Administration (FHA). The landmark legislation also gives tax credits for first-time homebuyers and low-income housing and bailout dollars for as many as 400,000 homeowners who can't pay their mortgages, among other provisions intended to stimulate the housing market.