I can't stress the importance of increasing the Conforming Loan Limits in high cost areas, such as California.
Below is a letter to California Association of REALTORS® members, on behalf of it's President, William E. Brown.
Please get the word out there on the importance of this matter, as it will help the California housing market recover much faster!
As rates are in the 7% range on Non-Conforming loans right now, all of those homeowers in adjustable rate mortgages would be able to refinance into a Conforming loan amount in the 5-6% range!
Let your voicees be heard!
Scott Gormley
Broker/Owner
Oak Valley Mortgage
Direct: 530-592-8362
Email: Scott@OakValleyMortgage.com
Here's the letter:
Dear C.A.R. Member:
Congressional leaders and the White House today reached agreement on a proposal to increase conforming loan limits as part of a larger economic stimulus package. Raising the conforming loan limits to more accurately reflect the cost of housing in California and other high-costs areas of the nation has long been an objective of C.A.R. While the details remain to be seen, this is a huge win for Californians. As REALTORS®, we should be proud of the role we have played to achieve this goal.
Currently, Californians are forced into more expensive non-conforming jumbo loans, decreasing homeownership opportunities for many and forcing others into more costly - and often riskier - loan products.
Under the terms of the proposed stimulus package, the conforming loan limit -- the maximum loan amount that government-sponsored enterprises like Fannie Mae and Freddie Mac may purchase or guarantee on the secondary market -- will be raised from $417,000 to as high as $725,000 in high-cost areas.
This is great news. But our work is not done. The Office of Federal Housing Enterprise Oversight (OFHEO) continues to oppose adjusting conforming loan limits. With your help, C.A.R. will continue to advocate for this much needed reform. Stay tuned.
Sincerely,
William E. Brown
President
CALIFORNIA ASSOCIATION OF REALTORS®
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