October 24, 2011
Mortgage Loan Limits
Senate Passes Loan Limit Extension Amendment
The Senate passed an amendment offered by Senators Menendez (D-NJ) and Isakson (R-GA) that would reinstate the higher loan limits through December 31, 2013. This would raise the FHA and GSE loan limits back to 125% of local area median home price (from the current 115%) and raise the high cost cap to $729,750 (from the current $625,500). The language would also extend the VA loan limits through the same date. NAR strongly supported and worked for passage of this amendment, which cleared the Senate with a vote of 60-38.
The Senate must still vote on the overall bill, H.R. 2112, which is now the combined Appropriations bill for the Department of Agriculture and Department of Housing and Urban Development. The Senate is expected to approve that bill next week, but its future in the House is uncertain. NAR will continue to work to preserve this amendment.
BofA’s Equator Requires Current License Information
On October 18, 2011, Bank of America (BofA) informed real estate professionals engaged in short sales transactions with the bank to input up-to-date real estate license information in Equator. BofA uses Equator as its online short sales portal. BofA has routinely monitored the accuracy of license information and prohibits participation by those it finds to have entered invalid license information from completing short sales. Starting on or about October 25, 2011, BofA will review each individual’s Equator profile to determine whether the license information is correct. Affected brokers and agents should confirm the accuracy of their license information promptly and correct it, where necessary.