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?