Saturday, January 31, 2009

Economic Recovery Package

$819 Billion Stimulus Package Approved!

Last week, the US House of Representatives passed the current Economic Recovery Package(HR 1). The California Association of Realtors totes this as good news, as the bill contains a number of issues critical to our industry including extending all 2008 Metropolitan Statistical Areas' Fannie Mae, Freddie Mac and FHA loan limits throughout the end of this year.

The extension prevents an MSA's 2008 loan limit from being reduced in 2009 for Fannie Mae, Freddie Mac and the FHA. Language in the bill also specifies that if an MSA's loan limit is set to change, it can increase, but is prohibited from declining.

The proposed legislation also will eliminate an existing payback requirement on the first-time home buyer tax credit for qualified buyers who purchase a home between December 31st 2008 and July 1st 2009.

Next week, the Financial Services Committee will meet and review other housing issues.

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