Today, the Senate approved H.R. 3221: The Housing and Economic Recovery Act of 2008 by a vote of 72 to 13, with 27 Republicans joining all the Democrats in attendance to support it. The measure now goes to President Bush, who has said he will sign it, perhaps as early as next week.

According to NRMLA’s most recent interpretation, the loan limit will go to $417,000 once HUD issues a Mortgagee Letter, and that the high cost area adjustments to a max of $625,500 will take effect on January 1.

In addition to raising loan limits, HR 3221 includes:

• Home Purchase product authority.
• Co-op product provisions.
• Origination fees of 2% on the initial $200,000 in maximum claim amount and 1% on the balance thereafter with a cap of $6,000
• Prohibitions on requiring the purchase of annuities and other financial products.
• Restrictions around cross selling financial products.
• Requirements on counseling protocols, funding and practices that promote independence and quality in counseling.

To read a copy of the Bill that passed the Senate click the link below.

H.R. 3221: The Housing and Economic Recovery Act of 2008