Higher Loan Limits May Be Restored!
October 21, 2011 In Uncategorized
The expiration of the higher loan limit has “made a weak housing market even weaker,” said Sen. Menendez during the Senate debate.
The Menendez-Isakson amendment also restores the FHA loan limit to 125% of the median house price in low cost areas. It was reduced to 115% on October 1. The Senate approved the loan limit amendment by a 60-38 vote. It now moves to the House. It took a minimum of 60 votes under Senate rules to approve and attach the amendment to a Department of Housing and Urban Development appropriations bill.
The National Association of Realtors lobbied heavily to get the necessary votes, officials said. To cover possible losses on higher balance Fannie/Freddie mortgages, the amendment imposes an annual 15 basis point fee on “jumbo
GSE” loans. Source: National Mortgage News