Senate has Passed a Measure to Restore Higher GSE Loan Limits
Late yesterday the Senate approved the amendment to restore the maximum loan limits on government backed mortgages to where they were two years ago; $729,750. Additionally, this restores the FHA loan limit to 125% of the median home price in low cost areas (it was reduced to 115%).
This would roll back the October 1 reductions in the Fannie Mae, Freddie Mac and FHA/VA loan limits in high cost areas.
The goal with this is to get the housing market moving faster to play a part in the economic recovery. At this point every little bit is going to help.
This was an amendment that was heavily lobbied by the National Association of Realtors to get the votes needed. The Senate approved this amendment by a 60-38 vote, so now it is on to the house.
Within the amendment is also an annual 15 basis point fee on "jumbo GSE" loans to cover possible losses on higher balance Fannie/Freddie mortgages
We will keep you posted as this moves on to the house.
What are you thoughts on this? Do you see it helping your clients?