Now that President Barack
Obama's $787 Billion Economic Stimulus Bill has been signed into law and will
take effect on March 4, many American homeowners are anxiously wondering how
this bill may affect the housing market. Despite primarily focusing on
bolstering the economy by creating jobs and reviving spending, the bill includes
steps to revitalize this critically important segment of the American economy.
But what impact will the stimulus package directly have on your mortgage?

President Obama's plan, named the American Recovery and Reinvestment Act, is
designed to address two groups of homeowners: those who are current on payments
but have high interest rates and not enough equity to qualify for refinance, and
those who are at risk of losing their homes. The plan also intends to provide
$200 billion in additional financial backing to Fannie Mae and Freddie Mac to
increase money available for home lending.

These steps will directly help homeowners and new home buyers seeking a new
mortgage, says Michael Isaacs, president and CEO of Residential Finance
Corporation (www.residentialfinance.com), a nationwide mortgage lender
specializing in FHA refinances. "The stimulus package aims to make money more
readily available for lenders to help those who are currently in need," says
Isaacs. "The American Recovery and Reinvestment Act will directly help those
seeking to refinance out of bad mortgages as well as those looking to become
homeowners for the first time."

The American Recovery and Reinvestment Act offers the following provisions:

FHA Loan Limits - FHA loan amount limits will be raised to $729,750 for homes in
high-cost areas. Areas with higher-valued homes will enjoy the many benefits of
an FHA loan, such as low rates and easier qualification standards. The bill
reinstates 2008 FHA loan limits, with a maximum cap of $729,750. The bill also
provides the option, if warranted, to increase loan limits for any "sub-area",
i.e.an area smaller than a county. These limits will expire December 31, 2009.

Home Ownership Tax Credit - A non-refundable tax credit of up to $8,000 will be
available for buyers who purchase a home this year--before December 1, 2009--and
who have not bought a house in the previous 3 years. This tax credit amount is
based on 10-percent of the home's purchase price, up to $8,000. To qualify,
homeowners must keep their home for at least 3 years.

Simplified Refinancing - Borrowers with less than a 20-percent equity stake in a
traditional loan guaranteed by Fannie Mae or Freddie Mac (commonly referred to
as "conforming" loans) may now refinance to up to 95-percent of their home's
market value without purchasing private mortgage insurance, which typically can
increase monthly payments by hundreds of dollars.

Neighborhood Stabilization - $2 billion in additional funding is also made
available to create the Neighborhood Stabilization Program (NSP) to address the
problems facing whole neighborhoods that are decimated by foreclosures. Funds
can be used to purchase, manage, repair and resell foreclosed and abandoned
properties. States and localities can also use these funds to establish
financing methods for purchasing and redeveloping foreclosed properties.

Reverse Mortgages - Loan limits on Home Equity Conversion Mortgage (HECM) - or
"reverse mortgage" loans will rise to $625,500 until the end of 2009. Current
limits, which mirror conforming loan limits, will be raised to open up reverse
mortgage options for many seniors who may want to rely on home equity as a
stable source of income.

Low Income Housing - States will receive financing for construction and
rehabilitation of low-income housing.

Rural Housing Programs - 100-percent financing will be made available for rural
housing loan programs.

Energy Efficiency Benefits - Tax credits for energy-efficient upgrades will be
extended through 2010.

Foreclosure Protection - $75 billion program will be established to subsidize
loan modifications for participating lenders to help many homeowners facing
foreclosure.

"Rates are still at historically low levels and this is still a great time to
refinance," says Isaacs. "However, there has been much talk that banks and
lenders will make it harder for borrowers to qualify for loans for both new and
refinanced mortgages, especially for borrowers with less than perfect credit
scores. I urge people contemplating a new mortgage or refinancing an existing
mortgage loan to move quickly to lock in their best loan rate and options."

About Residential Finance Corp.

Residential Finance Corporation (RFC) is the nation's premier home mortgage
lender specializing in FHA mortgage refinance. Founded in 1997 and now serving
26 states, RFC is "Full Eagle" certified by the U.S. Department of Housing and
Urban Development (HUD), offering refinancing borrowers the security and great
rates of government-insured home mortgage loans. RFC's investor relationships
include some of the nation's largest and most diverse investment banks.
Headquartered in Columbus, OH with offices in Tampa, FL, and numerous regional
offices, RFC employs hundreds of highly-trained Home Loan Consultants with the
knowledge and dedication to work closely with borrowers to help them find the
right home mortgage loan options--with the best mortgage rates and terms--to
meet each homeowner's unique needs. For more information, contact Jessica Manna,
CMO, at 614-255-4317.