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Senate takes step to restore higher loan limits
Oct 24, 2011, 11:08 AM | Updated: Mar 4, 2016, 5:59 am
The Senate voted to attach a proposal to a spending bill that could restore the size of loans the government buys or insures to a maximum mortgage amount of $729,750 in many markets. (AP Photo)
(AP Photo)
The Senate voted to attach a proposal to a spending bill that could restore the size of loans the government buys or insures to a maximum mortgage amount of $729,750 in many markets.
The higher conforming loan limits expired at the end of September, reverting to a maximum amount of $625,500, despite mass calls from the industry that doing so could potentially weaken the housing market, particularly in high-priced areas.
The lower loan limits are making it more difficult for “middle class home buyers to get credit when credit is tight,” says Robert Menendez, D-N.J., who introduced the bill amendment. “Getting our housing market moving again is one of the most important tasks facing the country.”
The Senate voted 60-38 on the spending bill. It’s expected to go before the House later this year.
The National Association of Realtors along with several other housing groups have been urging Congress to renew a two-year extension that would maintain the GSE maximum loan limit at $729,750.
