home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.

FHA, Conforming Limits Boosted

$729,750 limit effective July 1 to Dec. 31

February 13, 2008


President Bush has signed into law emergency legislation that will temporarily increase the conforming limit by 75 percent. In addition, the limit for loans insured by the Federal Housing Administration will also see a temporary boost.

H.R. 5140, the Economic Stimulus Act of 2008, was signed by Bush this afternoon.

The bill is intended to jumpstart the ailing U.S. economy and help the country avert a recession -- though some suggest a recession is already in place.

Among the pieces of the new law is a temporary increase in the conforming loan limit and the FHA limit.

The conforming limit, which is the maximum amount of a residential mortgage that can be purchased by government sponsored housing enterprises Fannie Mae or Freddie Mac, is currently $417,000. However, under H.R. 5140, the conforming limit will be increased by 75 percent to $729,750 from July 1, 2008, until Dec. 31, 2008.

photo of Bush at H.R.  5140 sigining
President Bush

The temporary increase to the conforming loan amount is limited, however, to 125 percent of an area's median home price as determined by the U.S. Department of Housing and Urban Development. HUD is required to post area median prices and loan limits within 30 days.

"It is the sense of the Congress that the securitization of mortgages by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation plays an important role in providing liquidity to the United States housing markets," the legislation said. "Therefore, the Congress encourages the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to securitize mortgages acquired under the increased conforming loan limits established in this section, to the extent that such securitizations can be effected in a timely and efficient manner that does not impose additional costs for mortgages originated, purchased, or securitized under the existing limits or interfere with the goal of adding liquidity to the market."

In addition, the cap for FHA-insured loans, currently at $362,790, will also be increased to $729,750 from July 1 until the end of the year. The same limitation of 125 percent of the median home price for the area applies to FHA loans.

The higher limits will help an estimated 138,000 FHA borrowers qualify for home financing that previously could not, according to the National Association of Realtors. Conventional conforming borrowers would increase by around 300,000.

In addition, the group projects around 410,000 foreclosures will be averted as a result of the new law.

photo of Bush signing H.R. 5140
signing of bill

The bill was originally announced by Bush on Jan. 24 and moved through both houses of Congress at lightning speed.

"Congress can also help by passing legislation to reform the regulation of Fannie Mae and Freddie Mac, to modernize the Federal Housing Administration, and to allow state housing agencies to issue tax-free bonds to help homeowners refinance their mortgages," the president said at today's signing ceremony, according to a White House transcript of his prepared remarks. "I hope that Congress can act on these matters quickly."


Emergency Action May Boost Loan Limits
House and Senate Democrats have worked out an economic stimulus package with the president that includes an increase to conforming and government loan limits.

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: [email protected]

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders