Congress has passed H.R.3081, an appropriations bill that would extend the current conforming loan limits through fiscal year 2011 and provide the Federal Housing Administration's (FHA) multifamily programs with additional commitment authority. The bill, which passed the Senate by a 69-30 vote Wednesday, would keep in place the $729,750 loan limit for mortgages in high-cost areas.
Mortgage Bankers Association Chairman Robert E. Story called extension of the loan limits ‘essential.’
‘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,’ he says. "Likewise, 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.’
SOURCES: The Library of Congress, Mortgage Bankers Association