Late last night, the House and Senate passed an extension of the $625,500 loan limit for reverse mortgages through December 31, 2010. Loan limits for the Home Equity Conversion Mortgage (HECM) would’ve returned to $417,000 at the end of the year if the extension wasn’t passed.
Also included in the continuing resolution (H.R. 2996), was an extension of the GSE loan limit of $729,750 through the end of 2010.
“Given the lack of a private secondary mortgage market, FHA, Fannie Mae and Freddie Mac are pretty much the only game in town,” said Robert Story, Chairman of the Mortgage Bankers Association.
“Extending the current loan limits through 2010 will allow more loans to qualify for these important programs and will help keep mortgage credit more accessible and affordable for qualified borrowers.”
The President is expected to sign the continuing resolution soon.