Congress is discussing extending the $625,500 limit out at least another year (Thank God) but in the same breath lowering how much borrowers can get. This is coming primarily because HUD recently asked Congress for an additional $800 Million because of possible future losses from possible increases in claims. 

There was also discussion about increasing the Home Equity Conversion Mortgage (HECM) limit to $729,000. This would be fantastic, but if loan amounts get lowered, it would be tough to determine if we would be better off or not.

I can say without a doubt that almost every piece of recent legislation  concerning the mortgage insustry has not come close to accomplishing it's objectives (e.g. Hope for Homeowners, HVCC, etc.) and that it seems clear to me that Congress as a whole does not have a clue as to what is in the best interests of the homeowner or taxpayer.

Who knows where we will end up in October (FHA Fiscal year starts in October) but I hope the legislators are geting the correct information.