Tuesday, March 25, 2008

Conforming Loan Limits Permanent?

I received an email the other day that spelled out a campaign that the National Association of Realtors has begun.

The conforming loan limits that went in to place earlier this month are not intended to stay in place permanently. They are scheduled to roll back to the previous numbers on January 1st 2009.

The National Association of Realtors is asking for FHA Reform Now!

They are stating that the new conforming loan limits are showing evidence that they are providing stability, liquidity and security in to the housing market.

They have created a sample letter that can be used to send to you elected officials, like Lois Capps and Barbara Boxer or Dianne Feinstein in California.

One thing I think is going to challenge this campaign is that it appears on the surface to be self serving. I don't really think this is the case.

Real Estate agents would benefit from a quicker turn around in the housing market, but I think the people that are being hurt most are actual homeowners who are struggling to figure out how to keep their homes.

With the increased limits they would appear to have more options when it comes to financing. Below is the exact verbiage from the email I received.

See You In Escrow!

Our new conforming loan limits are scheduled to expire at the end
of 2008. Help keep these new limits permanent by answering this
Call for Action. Please follow this link
and send your elected representatives a letter explaining that we
need these new conforming loan limits permanent.

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