Senate Passes Amendment to Restore $729,750

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Real Estate Agent with TIM LORENZ - Elite Home Sales Team DRE# 00919781
https://activerain.com/droplet/mYf

Senate Passes Amendment to Restore $729,750

 

Thursday the Senate approved an amendment to a spending bill which would restore the $729,750 maximum loan limit on government backed mortgages for two more years. In addition to increasing the ceiling, which dropped to $625,500 on October 1, the Senate amendment would also restore through 2013 the formula for determining the upper loan limit in high-cost housing markets.

 

The Senate approved the loan limit amendment by a 60-38 vote. It now moves to the House. It remains to be seen whether the House will approve the higher loan limits. The National Association of Realtors lobbied heavily to preserve the higher limits but previously, bills that would have extended it, failed to reach the House or Senate floors before it expired. The White House wants to reduce the government's role in mortgage lending and was against allowing the higher limits to remain in place.

 

To appeal to those against the higher limits, the Senate amendment would impose a new loan fee of 15 basis points a year on unpaid principal balance for the life of the mortgage, which backers said would raise $300 million in revenue. A basis point is a hundredth of a percent, so a 15 basis point fee would amount to $750 on a loan with a $500,000 balance.

 

It has been estimated by Fannie Mae, Freddie Mac and FHA that the lower loan limits would have affected approximately 83,000 mortgages in the high cost areas. These three government agencies back 9 in 10 mortgages.

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Rainmaker
856,247
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Wahoo that is great news they put the number back where it was.  That my friend will help us all.

Oct 24, 2011 07:02 PM #1
Rainmaker
344,162
Esperanza Butler® 818 926 5425
Century 21 Peak - West Hills, CA
Homes For Sale in West Hills, Ca (818) 926-5425

Hi Tim,

That's good news. Hopefully this will bring a positive response from a lot of potential  buyers

Thanks for spreading the good news!

Oct 25, 2011 06:26 PM #2
Rainer
478,183
Not a real person
San Diego, CA

Happy Hump Day!

Oct 26, 2011 02:58 AM #3
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Esperanza

Thank you for dropping in and getting the info.

Oct 26, 2011 03:26 AM #4
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Russel

Yes sir it is.

Oct 26, 2011 03:27 AM #5
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Sorry Mark

I missed your comment.  Thanks for coming by.

Oct 26, 2011 03:54 AM #6
Ambassador
1,001,454
Sharon Paxson
Compass - Newport Beach, CA
Newport Beach Real Estate

HI Tim - that would be good news if it passes, and perhaps inspire some buyers fo get off the fence.

Oct 31, 2011 04:17 AM #7
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

It is very good new Sharon.  It opens up more property in our area.

Oct 31, 2011 05:42 AM #8
Rainmaker
104,409
Cory & Michelle Beeson - (951) 526-8298 Serving the entire Temecula Valley
The Beeson Group, Inc. - Temecula, CA
Top 1% of Realtors Nationwide

That is good news!  Let's hope the House follows suit.  -Cory

Nov 01, 2011 05:45 AM #9
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Cory and Michelle

It is very good news.

Nov 01, 2011 07:03 AM #10
Rainmaker
3,551,619
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Tim - this is important for us living and doing business where the $729,750 was revised.   We'll keep thinking good thoughts on this one.

Nov 03, 2011 03:49 AM #11
Rainmaker
1,025,003
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Thanks Michael I will do the same.

Nov 03, 2011 04:35 AM #12
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