Economic Stimulus Package-GSE/FHA Update

February 29th 2008

As previously communicated, the President signed the Economic Stimulus Package on February 13^th, 2008, and gave HUD 30 days to publish the new temporary high cost loan limits for Fannie Mae, Freddie Mac and FHA. 

Key Updates/Timeline:

• HUD will publish temporary high cost loan limits for the GSEs (Fannie Mae and Freddie Mac) above the current conforming level of $417,000 limits as early as next week.  Office of Federal Housing Enterprise Oversight (OFHEO) which regulates the GSE's may decide to review the higher loan limits.  I personally anticipate a delay by the review process.
• The new temporary loan limits will apply to loans closed on or before 12/31/2008.
• In a meeting with industry leaders, FHA Commissioner Montgomery announced that the FHA floor would be increased to $271,050 and that FHA would publish loan limits by MSA for all counties above median sales price of $271,050 around the first week of March.
• VA is not included in the Stimulus Package.
• I understand that House and Senate conferees met February 28^th, 2008, on the FHA Modernization legislation.  I also expect the final bill to be sent to the President for signature in March.  This legislation will make the temporary FHA loan limits permanent and include a number of additional changes to modernize the FHA program.

Also Read:  Freddie and Fannie Are Able To Buy More Mortgages!!!!
Also Read:  Surprise, Surprise, The Senate Pass Their Version of the Economic Stimulus Package!!!

You can find AJ Nisen on Active Rain at Contra Costa California Mortgages.  Call AJ to talk about Mortgage Rates, Free Credit Report or visit AJ's website to use his mortgage calculator. 

Alan 'AJ' Nisen
Mortgage Loan Officer
Email: aj.nisen@bankofamerica.com
http://mortgage.bankofamerica.com/ajnisen 
http://www.activerain.com/ajn