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“Higher Mortgage Loan Limits Are Needed for FHA, Freddie Mac & Fannie Mae NOW…”
By Sherman Ragland | June 2, 2008
As a reader of this blog, you know that it is my strong belief that the current problems in the housing market have far more to do with the Mortgage Meltdown, then from over building or other issues specific to the home construction industry.
One of the HUGE problems is the inavailability of loans in higher priced markets like Virginia and Maryland.
The House of Representatives has recently passed a series of reform proposals for FHA, Freddie Mac & Fannie Mae that make the increased loan limits included in the economic stimulus legislation permanent.
This is particularly important for states, like Virginia, Maryland, and the District of Columbia, which have a high cost market.
According to the Mortgage Brokers Association, increasing FHA/GSE loan limits are providing the needed infusion of liquidity and stability into the market.
However, these reform bills are currently stalled in the Senate
YOU CAN MAKE A HUGE DIFFERENCE BY TAKING SOME ACTION NOW!
Don’t let the Senate stop the recovery of housing markets across the country through inaction.
Please tell BOTH of your US Senators that we need realistic and permanent loan limits help all areas of the country that are needed now.
Take 2 minutes now to type out a letter and send it in tomorrow to your two key decision makers in the US Senate.
If you need to look up your US Senators, please go to:
http://www.senate.gov/general/contact_information/senators_cfm.cfm
Below is the sample letter:
Subject: Make Higher Loan Limits Permanent for FHA, Freddie Mac & Fannie Mae
Dear [decision maker name automatically inserted here],
As your constituent and a REALTOR, I urge you, as a Member of the Senate, to support making permanent the FHA, Fannie Mae and Freddie Mac loan limits in the bipartisan Economic Stimulus Act, signed by President Bush last February. The legislation raised the maximum loan limits in high cost areas to $729,750 but it expires on December 31, 2008. The limits help homeowners in 240 counties in 26 states and can help get our national economy back on track.
The House -passed housing stimulus bill, H.R. 3221, makes the $729,750 limits permanent. Senate bills cap the limits at $550,440. Our 1.2 million members applaud the progress the Senate has achieved, but strongly believe that the final bill must include the House bill’s loan limits.
The national mortgage market meltdown dramatically raised the cost and reduced the availability of mortgages in my market. Higher limits are helping to revitalize local housing markets, providing safe, fair and affordable mortgages for our state’s homeowners. The limits are also helping to stabilize our entire economy. Higher limits simply reflect market realities in high cost areas. A lower limit unfairly penalizes citizens based simply on geography.
Drastically reducing the temporary limits at year’s end to the Senate cap of $550,440 will push our fragile housing and credit markets back into turmoil. We need permanent limits of $729,750 to stabilize our housing markets and help citizens of every state — not just residents of high cost areas. Please support making the $729,750 loan limits permanent.
Sincerely,
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Topics: Uncategorized | No Comments »
Tags: fha, freddie mac, home construction industry, housing market, mortgage meltdown, reform proposals, sherman ragland, strong belief
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