Mortgage Groups Push Senate Leaders to Extend Loan Limits

By Chris Birk

Real Estate and Mortgage groups are pressing Senate to take action on Bill that would extend the maximum mortgage loans limits through 2013.

The current loan limit is set to expire September 30th. The bipartisan bill introduced in early August would allow the Federal Housing Administration, the Department of Veterans Affairs and government-sponsored enterprises Freddie Mac and Fannie Mae to continue insuring homes up to the higher levels for another two years.

The Homeownership Affordability Act of 2011 is sponsored by Robert Menendez (D-NJ) and Johnny Isakson (R-GA). Sen. Diane Feinstein (D-CA) is a co-sponsor.

In all, more than 800 counties would be affected by the loan limit reduction. Those counties contain about 85 percent of the nation’s owner-occupied homes.

On Thursday, a bipartisan group of 37 lawmakers sent a letter to the House Appropriations committee recommending a short-term extension of the current conforming limits. The lawmakers urged the committee to attach the provision to a temporary government funding bill.

Read full article here: HuffingtonPost

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