By J. Craig Anderson

A number of measures enacted by July’s U.S. Housing and Economic Recovery Act take effect today, altering the economic landscape for Arizona home buyers and homeowners.

The most talked-about change is the federal HOPE Act, which allocates up to $300 billion for home buyers in default on their mortgages, and those in danger of default, to refinance their adjustable-rate loans to fixed-rate, Federal Housing Administration-insured mortgages at no more than 90 percent of current market value.

However, many in the housing industry say the law won't have much impact on the foreclosure rate because lenders are not obligated to participate in the program.

Another provision that has received some attention is the elimination of seller-funded down-payment-assistance programs for FHA borrowers, which also takes effect today.

The ban will virtually eliminate no-down-payment offers on new homes. FHA officials requested the ban, saying loans issued with down-payment assistance carry a default rate three times higher than traditional FHA loans and inflate their market value.

The housing act also places a one-year moratorium on &quo;risk-based"FHA loan insurance premiums, a program initiated in July to charge borrowers based on the likelihood of loan repayment. It streamlines the process for issuing FHA-insured loans on condominiums and reforms the FHA loan process for manufactured homes.

In addition, it authorizes a pilot program to generate alternative credit-rating information for loan applicants with insufficient credit history.

The law also affects reverse-mortgage borrowers by requiring that they receive "adequate counseling" from a third party not associated with the lender, and it allows the government to create a new counseling program funded by mortgage insurance premiums.

It also reduces possible conflicts of interest by forbidding reverse-mortgage loan originators from selling insurance, annuities or other financial products. They may not give or receive incentives from others to sell such products to reverse mortgage borrowers.

The law also places a $6,000 cap on origination fees, which will be adjusted periodically for inflation.