Housing is both the backbone and the economic engine that drives the U.S. economy and we have seen amazing strides in the last year.
The proposed U.S Senate Bill #1271 – the GSE Reform Bill – calls for winding down Fannie Mae and Freddie Mac’s operations over five years and encourages more private capital to enter the mortgage market.
However, the bill reduces the single-family conforming limit from $625,500 in high-cost areas to $417,000 by the end of five years. This is disastrous for California as we are a high-cost state and our Homeowners, whether buyers or sellers, should not be penalized by the reduction in loan limits.
To quote the California Association of Realtors, “While the bill is a starting point, any final legislation must not hinder liquidity for qualified homebuyers,
especially in a down market.”
“California, in particular, will be adversely impacted by this bill, which seeks to lower loan limits in high-cost areas, thereby making it more difficult for California homebuyers to get equal access to affordable mortgage capital and reducing homeownership opportunities,” said CAR president Don Faught.
Let your State Senators – who both oppose the bill – know your feelings as well as your State Representative, as this bill will ultimately reach the House of Representative, who has a track record of voting against “things that aid Californians”.