Today marks the final day for lenders to close loans for eligible first time home buyers and move up/repeat buyers in time for them to receive the Federal Homebuyer tax credit.
As you might have seen, the House of Representatives yesterday approved a bill that would extend the closing deadline from June 30 to Sept. 30. However, this does not immediately extend the deadline. The legislation requires Senate approval and a Presidential signature before it becomes official.
We remain hopeful that Congress will extend this deadline and allow for the additional time needed to continue to close and fund loans in a responsible manner, while still ensuring homebuyers receive the tax credit for which they are eligible. We expect additional updates from the Senate and the President in the next several days.
We understand our customers are looking for answers about what it means for them if the deadline passes before their loan is closed. We assure you that those customers who have met their obligations throughout the loan process will be treated fairly and reasonably. However, we must await Congress' decision on this matter before we can make any announcements about how we might handle those situations where a customer misses the opportunity to receive the tax credit because they closed on their loan after the deadline.
In the meantime, Sales, Underwriting and Fulfillment associates should continue to work with our customers to process and close these loans as soon as reasonably possible. Please use the following messages to assist you in responding to customer inquiries about this topic. According to U.S. government, the deadline for closing loans in time for customers to receive the Federal Homebuyer tax credit continues to be June 30.
We are hopeful Congress will extend the deadline, and eagerly await Senate's vote on the bill that was recently passed by the House of Representatives. We expect to know more about whether the deadline will be extended in the next several days.
In the meantime, all of our efforts continue to be focused on working with our customers to take all the actions necessary to process and close their loans. Customers should continue to stay in close contact with their MLO or HSS until their loan is closed.
In the case the deadline is not extended, Bank of America is prepared to work with any customer who closes on their loan after June 30 and misses the opportunity to receive the tax credit. Our goal will be to be fair and reasonable to any customer who met their obligations throughout the loan process.
Additional guidance on this topic will be available once it is clear what Congress intends to do regarding the June 30 deadline.