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By · November 2, 2009Congress Extends Higher Loan Limits for Fannie, Freddie, FHA
MBA this week urged Congress to immediately extend the higher loan limits for Fannie Mae, Freddie Mac, and the Federal Housing Authority (FHA). Those limits were scheduled to expire on December 31, 2009, and with an appropriations bill that would extend them stalled in Congress for months over budget issues, lenders were being forced to stop locking in interest rates beyond 60 days for loans over $625,500.
On Monday, October 26, MBA was joined by the National Association of Realtors and National Association of Home Builders in sending a letter to the four congressional leaders urging prompt action on this legislation. The letter (attached) made the case that although the loan limits would not expire for another two months, the uncertainty surrounding their renewal was forcing lenders to stop underwriting certain high-cost mortgages. MBA also fanned out on Capitol Hill, meeting with key congressional offices to urge that the loan limit bill hitch a ride on legislation moving through Congress that week.
The Obama Administration weighed in, urging prompt congressional action with a press release on Thursday.
Congress responded to industry and the President by taking the unusual step of adding the legislation to the Continuing Resolution (CR) that had to be enacted in order to avoid a federal government shutdown this Saturday. On Thursday, October 29, the House passed the CR by a vote of 247 to 178, and the Senate quickly followed suit with a vote of 72 to 28. President Obama is expected to sign the bill by the end of the week.
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