A spending bill approved by the House Appropriations Committee would extend the temporary $729,750 loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration in high cost housing markets through September 2010.

Congress first raised the limits last year after the secondary market for mortgages collapsed in the late summer of 2007, allowing Fannie, Freddie and FHA to to buy or guarantee loans of up to 125 percent of the median home price in high-cost areas.

A spending bill approved by the House Appropriations Committee would extend the temporary $729,750 loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration in high-cost housing markets through September 2010.

Congress first raised the limits last year after the secondary market for mortgages collapsed in the late summer of 2007, allowing Fannie, Freddie and FHA to to buy or guarantee loans of up to 125 percent of the median home price in high-cost areas.

Although banks and credit unions continue to make larger "jumbo loans," they must hold them on their books, making them more expensive and harder to obtain than loans eligible for purchase or guarantee by Fannie, Freddie and FHA (see story).

The spending bill approved by the Appropriations Committee to fund transportation, housing and urban development programs would also continue the FHA’s Home Equity Conversion Mortgage (HECM) reverse mortgage program for seniors, according to a summary posted by the committee.

Other provisions of the bill include $196.8 million for counseling families in danger of losing their homes to foreclosure, and $70 million to continue pre-purchase counseling for prospective homebuyers.

The bill would provide $4.6 billion to fund community and economic development projects in 1,180 localities, a $725 million increase from 2009, and $250 million to "transform neighborhoods of extreme poverty into sustainable mixed-income neighborhoods" by demolishing "severely distressed" public housing.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription