Mortgage Daily Logo

High Cost Loan Limits Extended

Mortgage News

Congress has approved a bill that extends loan limits on homes in high-cost areas and provides additional funding for apartment loans.

The U.S. Senate and House of Representatives Wednesday passed H.R. 3081.

The legislation extends the current conforming loan limits through the new fiscal year beginning tomorrow. High-cost loan limits as high as $729,750 were set to expire today — the end of the government’s fiscal year.

High-cost limits were originally established with the passage of the Economic Stimulus Act of 2008, which was signed into law by President George W. Bush in February 2008.

H.R. 3081 also extends loan limits for loans insured by the Federal Housing Administration, including home-equity conversion mortgages.

“Extending the existing limits is essential to helping borrowers continue to have access to affordable long-term, fixed-rate mortgage credit in today’s struggling economy,” Mortgage Bankers Association Chairman Robert E. Story Jr. said in a news release today. “The current limits have been a key component of keeping the mortgage market functioning, helping keep mortgage interest rates low for consumers who want to purchase a home or refinance an existing mortgage.”

H.R. 3081 additionally provides $20 billion in loan commitment authority for FHA’s General and Special Risk Insurance Funds.

“Providing the FHA with additional multifamily commitment authority will help ensure funding for the continued development, renovation and mortgage refinancing necessary to preserve affordable rental housing in this country,” Story stated. “This sector has been crucial during the recent housing downturn and credit crisis, and FHA needs the additional authority in order to ensure the market remains liquid.”

Related Posts

Mortgage Servicing Lawsuits

Mortgage Servicing Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story BAC Home Loan...

Mortgage Servicing Lawsuits

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

Mortgage Servicing Lawsuits

Value to Drive Borrower Engagement at Mortgage Lenders

The mortgage industry has fundamentally changed over the previous 10 years, particularly as we�ve shifted from a refinance-driven environment, to focus more on purchase originations. A number of lenders have built successful businesses around the last two decade�s...

Mortgage Servicing Lawsuits

Creating a Positive Customer Experience

Creating an optimal customer experience has become increasingly critical for mortgage servicers as each customer’s business becomes harder to earn and retain. Most servicers outsource the complex process of homeowner insurance tracking and must ensure their insurance...

Popular posts

When Can I Move in and How Do I Get the Keys?
When Can I Move in and How Do I Get the Keys?

It’s no secret that the process of buying a home can be lengthy and fairly complex – between funding, making an offer, negotiating with the seller to win over the home, and ultimately setting a closing date. Although there were presumably points of confusion and...

What Do Attorneys Do in a Real Estate Transaction?
What Do Attorneys Do in a Real Estate Transaction?

Responsibilities of a Real Estate Attorney Reviewing documents - such as purchase agreements, title documents, mortgage docs, transfer documents and typically represents a buyer or a seller. They are certified professionals who oversee the legal aspects of real estate...

What is Homeowners Insurance and Why Do You Need It?
What is Homeowners Insurance and Why Do You Need It?

Homeowners insurance is a type of insurance that provides financial protection against damages to your home, as well as your personal belongings. It is important to have homeowners insurance if you own a home, because it can help protect you from costly repairs or...

Closing on a House: What to Expect and Closing Day Tips
Closing on a House: What to Expect and Closing Day Tips

Your train has finally arrived at the station. Congratulations you have made it to the closing table after months of house hunting, jumping through the hoops for a successful loan process and mountains of paperwork. Typically, this paperwork journey takes about 4-8...

How To Win a Bidding War on a House
How To Win a Bidding War on a House

When supply is low and demand is high, it’s important to arm yourself with an awareness and expectation that the house of your dreams may enter into a bidding war. Competing for a house, with multiple offers pushing the price higher, may seem like a less than an ideal...

Newsletter

Don’t worry, we don’t spam