MBA lauds loan limit extension

The Mortgage Bankers Association (MBA) has applauded the passage of legislation that will maintain the existing loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) through Dec. 31, 2010. An extension of the current loan limits (which had been due to expire Dec. 31, 2009) was included in the continuing resolution (HR 2996) that passed the House of Representatives and the United States Senate on Oct. 29. "Given the lack of a private secondary mortgage market, FHA, Fannie Mae and Freddie Mac are pretty much the only game in town. Extending the current loan limits through 2010 will allow more loans to qualify for these important programs and will help keep mortgage credit more accessible and affordable for qualified borrowers," said MBA Chairman Robert E. Story Jr. "As we try to maintain the momentum of the housing recovery, providing affordable financing for qualified borrowers is critical. Extending the loan limits, along with other initiatives such as extending and expanding the homebuyer tax credit, will help restore stability to the housing and mortgage markets."  For more information, visit www.mortgagebankers.org.