NYSAR President Page Calls for Increase in Conforming Loan Limit

NYSAR joined with a coalition of REALTOR associations from across the nation to call upon Congress today to assist the recovery of the housing market by permanently increasing the conforming loan limit to $729,750.

NYSAR President Linda J. Page wrote today to the members of the Senate Banking, Housing and Urban Affairs Committee urging their support of the inclusion of this language in “The Federal Housing Finance Regulatory Reform Act of 2008.” In the letter, she noted the change would not only provide a positive boost to the housing market, but also to the state's economy.


The following is the text of the letter:

Dear Senate Banking, Housing and Urban Affairs Committee:

The New York State Association of REALTORS urges your support for inclusion of language in “The Federal Housing Finance Regulatory Reform Act of 2008” that will permanently increase the conforming loan limit to $729,750. Congress currently has a unique opportunity to give an immediate boost to the economy, bring greater liquidity to a distressed housing market, create new homeownership opportunities, and save hundreds of thousands of homeowners from foreclosure without any additional costs to taxpayers.

With steep declines in housing sales, production, and prices, New York’s slumping real estate sector has staggered the state’s economy. New York’s REALTORS believe increasing the conforming loan limit will supply an immediate infusion of capital into both the housing market and the economy as a whole. The National Association of REALTORS estimates that by increasing the conforming loan limit Congress can generate nearly $42 billion in economic activity through increased home prices alone.

A primary reason for the current decline is New York’s housing affordability crisis that has been exacerbated by the shortage of liquidity in the secondary market for jumbo loans. The shortage of capital for jumbo loans means that New York homeowners who were dragged down by the current market conditions are faced with no safe and affordable refinancing options due to New York’s high-housing costs. A significant number of New York homeowners and homebuyers lack access to not only Fannie Mae or Freddie Mac (GSE) financing, but FHA loans or the VA loan program, both of which must be increased by Congress.

Now, more than ever, Congress can no longer wait to take action. New York’s economy, homeowners and housing market need relief now and the state’s economy, like the nation’s, needs a boost. We strongly urge that the Senate include language in “The Federal Housing Finance Regulatory Reform Act of 2008” that includes an increase in the conforming loan limit to $729,750.

Sincerely,

Linda J. Page
2008 NYSAR President