Raising the Conforming Loan Limit ???

Raising the Conforming Loan Limits ???

The Office of Federal Housing Enterprise Oversight issued a report on January 11^th, 2008.  The report discusses raising the conforming loan limit from its current $417,000.

   The OFHEO analyzed impacts from the House and Senate bills.  The bill is HR 1427.  It would allow higher cost areas a new limit that would be the lower of either the median area home price or 150% of the current limit which is $625,500.  The Senate bill is similar to the House bill but the increase would only be effective for the year after enactment. 

This could help many homeowners as the difference in rate between the conforming loan limit is close to 1%.  The report is very detailed and much research has been completed. 

These are proposals are still making their way through the House and Senate and each are not identical.  Once those differences are smoothed out these proposals may be enacted.  It looks like most are not bi-partisan and the democratic party has more votes and is pushing for their enactment.  We will see what the final version looks like and if it can be enacted. 

The full report can be accessed at:

 http://contactherrick.com/files/8/4/8427e1ad0ac567663cb3a4ada11cdf2a/95221-conforming-loan-limit.pdf

Thank you for your business and your referrals.

Roger Herrick

Mortgage Broker

www.ContactHerrick.com