MUST READ!!! WE NEED YOUR HELP!!

The Economic Stimulus package that was approved today by the House is now in the Senate and rumors are circulating that the Senate may remove increases in FHA and GSE loan limits.  This would not be good news.  I just received this from the National Association of Realtors and wanted to post it for all.  We need your support.  We need to write or email our Senators and ask them to include FHA and GSE limit increases as part of their package.

Subject: Support Inclusion of Housing in the Economic Stimulus Package 

Dear [decision maker name automatically inserted here],

As a constituent and a REALTOR®, I want to stress how important it is for the Senate to include increases for the FHA and GSE loan limits in the Senate's economic stimulus package.  These provisions will create safe and affordable mortgage options for our state's homeowners and provide much needed stability for our local economies.

The critical role that Fannie Mae and Freddie Mac (GSEs) play in providing liquidity to the mortgage market has never been more evident than it is today.  The national subprime meltdown has had a dramatic impact on both the cost and availability of mortgages in my market.  Since August 2007, the interest rates for jumbo borrowers have been more than 1 percentage point higher than conforming loans, which can cost homeowners up to $400 month in higher interest payments.

Raising the GSEs' conforming loan limit will provide immediate relief to borrowers and alleviate downward pressure on our already fragile housing markets. According to the National Association of REALTORS®, increasing the GSE loan limit will result in more than 300,000 additional home sales and strengthen current home prices by 2 to 3 percent.

I also believe that increasing the FHA loan limits is critical to helping bolster our fragile housing market.  Current law restricts FHA loans to levels well below the median home price in many areas of the country and caps loans in high costs states at $363,790. These limits are preventing many homebuyers from using FHA to purchase or refinance their loan.  The proposed provision will increase FHA loan limits nationwide by raising the floor to $271,050 and the limit to 125% of local median home prices.  These increases will help an additional 138,000 Americans purchase and 200,000 families refinance their homes safely and affordably.

I hope I can count on you to support including increases for the FHA and GSE loan limits in the Senate's economic stimulus package.  Our national housing and mortgage finance markets need stability and an immediate infusion of liquidity.  Both of these provisions are necessary if our nation's families, housing markets and economy are to move beyond the crisis they now face.

Sincerely,