sigh, what a news day
In addition, the package includes tax breaks for businesses and would take some steps to boost the ailing housing market. To that end, the legislation would temporarily raise to $729,750 the limit on Federal Housing Administration loans and the cap on loans that mortgage giants Fannie Mae and Freddie Mac can buy. Raising that cap on Fannie Mae and Freddie Mac should provide relief in the market for “jumbo” mortgages — those exceeding $417,000. The credit crunch hit that market hard, making it very difficult, if not impossible, for people to get those loans. And, that has plunged the housing market even deeper into turmoil.
Bush urged Congress to pass additional legislation that would revamp Fannie Mae and Freddie Mac and modernize the Depression-era Federal Housing Administration, which insures mortgages for low-and middle-income borrowers. The president also said Congress should approve legislation allowing state housing agencies to issue tax-free bonds to help squeezed homeowners refinance their mortgages.
gee, I don’t smell lobbyists on this push do you? I’m guessing the Nation Associations of Realtors or something to that effect, as well as Bank of America/Countrywide. I’m not smart but by raising the ceiling on what a Jumbo loans is it seems that people can once again buy homes that don’t deserve them. AHHHHH, but this time, the government sponsored Fannie and Freddie can take the donkey punch instead of the lenders…no?
One good thing about increasing the jumbo is that the morons who bought half-million dollar houses with trick ARMs can now maybe refi into a standard mortgage. I think that is the unwritten purpose of “temporary.”
Not that I care about those dopes but it is better than having a bunch of foreclosures.
I plan on being one of those morons in the next couple of months
wooohooooo
That is incredibly useless. Messing with credit is what got us into the problem to begin with.
Oh my gosh I agree with Dave on something.
FHA gov’t guaranteed loans was one of the few programs that helped the poor but not the rich. Now it should also include those jumbo mortgages? Why should the rich be left out? They’re on every other gravy train the tax code offers.
maybe you should write a letter to bush….
I did.
Being from Massachusetts, I can tell you most houses in this area fall into the category of the jumbo loan…not just houses for rich people…I am glad the cap has been raised…the ones who are making out aren’t the banking community they don’t finance those loans anyway