In two short weeks, on October 1, 2011, the conforming loan limits for Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) will be lowered. The disruption that would occur with the lowering of the current loan limits would further damage the already fragile housing market and impede the economic recovery of our nation!
The BIA needs you to call and send a letter to your member of Congress urging them to support immediate efforts to extend the current loan limits for Fannie Mae, Freddie Mac and the FHA!!
The housing finance system is under a cloud of uncertainty. The federal government, through the GSEs and the FHA, is currently accounting for nearly all mortgage credit flowing to home buyers and rental properties. Lowering the loan limits will only further restrict overall mortgage liquidity in the marketplace and place further downward pressure on home prices!
A drop in these mortgage loan limits would reduce home prices in major markets all across the country. This is not the time to reduce housing demand and exacerbate the current housing downturn!
Call your member of Congress at (866) 924-NAHB (6242) and please send a letter to them here.
If you have any questions or feedback on this issue, please email BuilderLink@nahb.org.