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It may soon be possible for residents of foreclosed homes to remain in their home — as tenants instead of owners.

The House Financial Services Committee is considering a bill to ease the pressure that unsold inventories of vacant, foreclosed homes are putting on the housing market. The Neighborhood Preservation Act would authorize FDIC-member banks, Fannie Mae and Freddie Mac to enter into five-year lease agreements to rent bank-owned properties back to the foreclosed
homeowner.

News has surfaced that the administration was considering such a policy for Fannie and Freddie, but a group of bipartisan representatives want to enact it with legislation.

This could lift a great burden off the shoulders of many homeowners who thought it was inevitable that they had to move from their long-established home. It’s particularly welcome news to families with kids who are now preparing to return to school in their local district.

What are real estate industry leaders doing to help shape an improved housing market?

It’s quite possible that success-proven industry leaders could provide the input needed to turn the housing market in a positive direction, where politicians have failed.

A recent proposal from a key leader may lead to the attainment of that goal. Realogy Corporation, a major provider of real estate and relocation services, announced that it has sent a formal request to President Obama and his administration calling for a White House summit on housing.

“Housing has an enormous impact on our nation’s GDP and given its substantial influence on all aspects of the economy, we believe it warrants special attention from the White House,” said Realogy CEO Richard A. Smith.

“The key to the proposed White House summit on housing would be its emphasis on bringing together real estate business leaders to make actionable recommendations designed to stimulate the growth necessary for a sustained recovery in housing, which would have an ensuing positive effect on job creation and the broader U.S. economy.”

How will the downgrading of the nation’s credit affect housing?

The next few weeks and months will tell the story, but it will probably push mortgage interest rates up.

Congress’ last-minute accord to raise the nation’s debt ceiling and avert a default wasn’t enough to save the United States’ triple-A rating from Standard & Poor’s. The market’s reaction to the news could have an impact on Treasury yields and with these yields closely tied to mortgage rates, on homebuyers’ borrowing costs. The announcement of the downgrading was followed by a wild roller-coaster ride for stocks and bonds.

S & P said the fiscal plan that Congress and the administration agreed to “falls short” of what its analysts believe is “necessary to stabilize the general government debt burden by the middle of the decade,” as noted in a report in DS News.

Are mortgage applications for commercial real estate picking up?

Second quarter 2011 commercial and multifamily mortgage loan originations were 107 percent higher than during the same period last year and 52 percent higher than the revised figures for the first quarter of 2011, according to the Mortgage Bankers Association’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.

“Commercial, multifamily mortgage borrowing and lending continues to rise from the depths of 2009 and 2010,” said Jamie Woodwell, MBA’s vice president of Commercial Real Estate Research.

“Greater stability in property fundamentals and prices, and an improving sales market, are providing greater clarity for borrowers and lenders alike. Property values and interest rates — coupled with job growth, consumer spending, household growth and other macro-economic trends that drive demand for commercial real estate — will be keys to how property owners seek and qualify for mortgage financing going forward.”

Are home foreclosures decreasing?

Yes. RealtyTrac, a major online marketplace for foreclosure properties, released its midyear 2011 Metropolitan Foreclosure Market Report. It shows foreclosure activity decreased on a year-over-year basis in 178 out of the nation’s 211 metropolitan areas with a population of 200,000 or more.

The report also shows that all top 10 metro areas with the highest foreclosure rates in the first half of the year posted decreasing foreclosure activity compared to the first half of 2010.

Jim Woodard writes for Creators Syndicate, creators.com.