Tell Congress to Extend Conforming Loan Limits!

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.

Lawmakers Indicate Support for Extending Conforming Loan Limits

We wanted to draw your attention to this article in today's Monday Morning Report from NAHB:

NAHB’s ongoing efforts to extend the current conforming loan limits, which are due to expire on Oct. 1, received a boost this week when CQ Today reported that Rep. Barney Frank (D-Mass.) said the Administration has changed its stance on the issue and would now support a one-year extension of the current home loan guarantees.

Reps. John Campbell (R-Calif.) and Gary Ackerman (D-N.Y.) on July 15 introduced legislation (H.R. 2508) that would provide a two-year extension. In addition, pending legislation by Reps. Gary Miller (R-Calif.) and Brad Sherman (D-Calif.) — H.R. 1754 — would provide a permanent extension. Despite these positive developments on this issue, extending the mortgage limits is far from a done deal, with many conservative lawmakers in opposition and in favor of reducing the government's involvement in housing and potential risks to taxpayers. If Congress fails to act, the national ceiling for Fannie Mae, Freddie Mac and Federal Housing Administration home loans will drop from $729,750 to $625,000. A drop in some mortgage loan limits would reduce housing demand and place downward pressure on home prices in major markets across the country, exacerbating the current housing downturn and endangering the fragile economic recovery, according to NAHB economists. The CQ Today article also cited NAHB CEO Jerry Howard, who predicted an extension would come to pass if voted on in the House. "It's really not a partisan issue," said Jerry. "It's a geographic issue, and Republicans in high-cost areas are going to have to recognize their constituents." See NAHB's recent study on the impact of loan limit changes for 2011. Contact: Scott Meyer (800-368-5242, x8144).