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Pertinent information from Speaker of the House, Nancy Pelosi, delivered by our Santa Barbara Multiple Listing Service: A bill likely to raise the conforming loan amount from $417,000 to $729,000 is due to be signed into law today!!!
This is even more good financial news for folks looking for an opportunity to buy a home in today’s market!!
From the SB MLS Staff:
The Conforming Loan Limit is a step away from being raised from
$417,000 to $729,750. The Bill was passed by the House and
Senate yesterday (2/7/08) and is likely to be signed by the
President today.
The following information is actual language from the bill:
Title II: Housing GSE and FHA Loan Limits - (Sec. 201) Raises the
statutory ceiling on the maximum original principal obligation of
a mortgage originated between July 1, 2007, and December 31,
2008, that may be purchased by either the Federal National
Mortgage Association (Fannie Mae) or the Federal Home Loan
Mortgage Corporation (Freddie Mac). Disregards mortgages
purchased with the increased ceiling amount for purposes of
meeting certain housing goals established under the Housing and
Community Development Act of 1992.
Expresses the sense of Congress that Fannie Mae and Freddie Mac
should securitize mortgages acquired pursuant to the increased
conforming loan limits of this Act if the manner of
securitization does not: (1) impose additional costs for
mortgages originated, purchased, or securitized under existing
limits; or (2) interfere with the goal of adding liquidity to the
market.
(Sec. 202) Establishes a temporary loan limit increase for
FHA-insured mortgages in specified high-cost areas for which a
borrower received credit approval by December 31, 2008.
Grants the Secretary of Housing and Urban Development (HUD)
discretionary authority to increase loan limits in 2008 based
upon the size and location of residences in particular areas.
Directs the Secretary to publish the median house prices and
mortgage principal obligation limits as revised by this Act not
later than 30 days after its enactment.
Information from the Office of Speaker Nancy Pelosi:
Fact Sheet
February 7, 2008
Recovery Rebates and Economic Stimulus
for the American People Act
Today, the House will complete action and send to the White House
bipartisan economic stimulus legislation (H.R. 5140) to help
hardworking Americans who are struggling with the high costs of
gas, health care and groceries, and to jumpstart our slowing
economy and create jobs here at home.
It will:
* Put hundreds of dollars into the hands of more than 130
million American families including seniors and disabled veterans
who will spend it immediately to reinvigorate the economy;
* Build on the child tax credit by offering a one-time rebate
of $300 per child;
* Expand financing opportunities for Americans in danger of
losing their homes because of the mortgage crisis;
* Promote small business investment in plants and equipment;
and
* Help create 500,000 jobs by the end of the year.
Getting this bipartisan bill done quickly is a victory for the
American people that will inject confidence and consumer demand,
promote economic growth, and create jobs. We will take
additional action to help American workers and help our economy
recover and grow.
This measure represents the House bill, with 2 additions from the
Senate: expanding recovery rebates to an additional 20 million
seniors and 250,000 disabled veterans and clarifying that
undocumented workers are prohibited from receiving rebates.
Broad Tax Rebates for Individuals (about $106 billion in 2008 &
$115 billion over 10 years)
* Tax Cut for More than 130 Million Families. This broad-based
stimulus package will provide tax relief of up to $600 per
individual and $1,200 per married couple, plus an additional $300
per child. Recovery rebate checks could be sent as early as
mid-May, getting money to Americans who will spend it immediately
to reinvigorate the economy.
* Unprecedented Tax Relief for Working Families. The measure
provides $32 billion in tax relief for 35 million families who
work but make too little to pay income taxes — families who
otherwise would not have been included in this recovery effort.
More than 19 million of these are families with children.
Americans who earned at least $3,000 in 2007 will get at least
$300 per single and $600 per couple, plus a child tax credit of
$300 per child. Tax rebates that include low- and moderate-income
families are 24 percent more effective as stimulus than rebates
that leave these families out. [Economist Mark Zandi of Moody’s
Economy.com]
* Recovery Rebates to 20 Million Additional Seniors and 250,000
Disabled Veterans. The measure provides recovery rebates to
anyone who receives at least $3,000 in Social Security income,
self-employment income or veterans’ disability payments
(including payments to survivors of disabled veterans). The
original House bill provided rebates to 13 million seniors.
Residents of the U.S. territories will also receive the benefit.
* Tax Fairness and Targeted Rebate. The rebates will go to
middle-income Americans and those aspiring to it. The wealthiest
taxpayers are not eligible for this relief. Tax relief begins to
phase out above incomes of $75,000 for a single and $150,000 for
a married couple.
* American families are struggling in weakening economy.
Family incomes and home prices are down as health care, energy,
food, and education costs and mortgage foreclosures have climbed.
No wonder American families falling behind on their bills and
consumer confidence is at a five-year low.
* Clarifies that undocumented workers cannot get recovery
rebates. The measure includes safeguards to ensure that
undocumented workers will not obtain rebates. It requires that
all people must have valid Social Security numbers to receive
recovery rebates. Undocumented persons cannot hold Social
Security numbers and will not be able to access a rebate.
Jumpstarting the Economy
* Relief Helps Financially-Pressed Americans — Putting Money
into the Economy. Economists estimate that each dollar of
broad-based tax cuts leads to $1.26 in economic growth. Congress
will develop a plan of further assistance, which could include
extension of unemployment benefits, Food Stamps, state and local
assistance and Medicaid.
Helping Families Avoid Foreclosure
* Increasing Affordable Refinancing Opportunities and Liquidity
in Housing Market. For 2008, the bill increases the FHA loan
limits up to $729,750, to expand affordable mortgage loan
opportunities for families at risk of foreclosure through the
Federal Housing Administration. To enhance credit availability
in the mortgage market, the measure includes an increase in the
loan limits for single family homes from Fannie Mae and Freddie
Mac from $417,000 up to $729,750 that covers loans made between
July 31, 2007, and December 31, 2008.
Encouraging Business Investment (approximately $44 billion in
2008, $7.5 billion over 10 years)
* Small Business Expensing. The bipartisan plan doubles the
amount small businesses can immediately write off their taxes for
capital investments made in 2008 from $125,000 to $250,000, for
purchases of new equipment of up to $800,000 (from $500,000).
* Bonus Depreciation. It provides immediate tax relief for all
businesses to invest in new plants and equipment by speeding up
depreciation provisions, so that firms can write off an
additional 50 percent for investments purchased in 2008.
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