Bill Introduced to Extend Loan Limits One Year

Last Tuesday, the Senate introduced SB 1508, a bill to extend the current loan limits for one year.  Originally sponsored by California Senator Dianne Feinstein, the bipartisan bill would increase the cost of loans for Fannie Mae and Freddie Mac between $625,500 and $729,750, to offset the perceived cost of increasing the loan limits another year.

Without Congressional action, the current loan limits will expire on Sept. 30, 2011; the VA limits will expire December 31st. Housing markets remain fragile, and this bill will ensure the market is not further disrupted, causing more declines in home values and making it even more difficult for American families to purchase a home.

The National Association of REALTORS® recently issued a letter of support for SB 1508.