Conforming and FHA loan limits would be limited to $625,000 in legislation that could be considered on the Senate floor shortly, according to preliminary reports. Those loan limits would be less than the $729,750 limits included in House-passed legislation. NAR would like to see the higher limits. Current loan limits of $729,750, enacted earlier this year as part of an economic stimulus package, are due to expire at the end of the year. The Senate bill would also create a long-sought world-class financial regulator for secondary mortgage market companies Fannie Mae and Freddie Mac, and give FHA an expanded role in helping borrowers replace troubled loans with safe federally backed financing. Should the Senate pass its legislation, lawmakers from the House and the Senate must reconcile differences between the two bills before a single bill can be passed by Congress and sent to President Bush for signature.
