The House is set to vote on economic stimulus plan today (1/29). This includes provision to increase the conforming loan amount to $729,750 in 2008 (up from

Currently the bill can only allow the conforming amount to go up during 2008– there are no current plans to extend the change into 2009.

If/when the House approves, the Senate will review next week and we expect the final bill to be completed for approval by the President by Feb 15th.

There is some concern being expressed in the Senate about the increase in the conforming loan limit. There is the possibility the increase may not go all the way up to $729,750. Predictionists expect som increase in the conforming loan limit, but it is not clear right now how much that increase will be.

Some FAQs:

When? If all goes as planned and the President approves the bill on 2/15, we believe that mortgage bankers/originators would be able to start making loans almost immediately after bill is signed into law.

How Long? While the current version limits origination period to 2008 only, most feel that once the program gets going its going to be hard to stop. Most investors want any program to be longer term to ensure liquidity.

This entry was posted on Tuesday, January 29th, 2008 at 11:12 am and is filed under Mortgage Meltdown. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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