Gov. Schwarzenegger Applauds the President and Congress for Permanently Raising Federal Home Loan Limits

Press Release

Gov. Schwarzenegger Applauds the President and Congress for Permanently Raising Federal Home Loan Limits

Governor Aggressively Promoted Increasing Home Loan Limits in Washington

Governor Arnold Schwarzenegger today released the statement below after President Bush signed the Housing and Economic Recovery Act of 2008, which permanently raises federal home loan limits. Aggressively promoted by the Governor and his Administration, the legislation will help more Californians keep their homes and make additional California homebuyers eligible for government-backed home loan programs.

"California has been impacted by the ongoing mortgage crisis more than any other state and this bill is exactly the kind of bold action needed from Washington to help families in need and stimulate the economy," said Governor Schwarzenegger. "Permanently raising federal home loan limits will reduce foreclosures, support more home purchases, and allow more Californians to achieve the American dream of homeownership with safe and secure financing - and I applaud President Bush and Congress for making it a reality."

The Housing and Economy Recovery Act of 2008 permanently raises home loan limits for FHA, Freddie Mac and Fannie Mae to a maximum of up to $625,000. The bill also provides more funding for free counseling to families facing foreclosure and provides new refinance opportunities. It gives states additional tools to help revitalize neighborhoods devastated by foreclosures and to provide low cost loans to first time homebuyers who are also now eligible for tax credits of up to $7,500.

The Governor aggressively promoted increasing home loan limits and then making them permanent. In a meeting with President George W. Bush, Governor Schwarzenegger led efforts urging the Bush Administration and Congress to raise federal loan limits. Additionally, last fall, the Governor sent a letter calling on Congress to increase those limits and sent a similar letter again earlier this year. After Congress and the President approved a temporary increase, the Governor asked them to make the increase permanent. In February 2008, the Governor met with the U.S. Department of Housing and Urban Development Secretary in Washington D.C. to reiterate the importance of a permanent loan limit increase and followed this meeting by issuing separate letters to Congressional leadership, Financial Services Committee leadership, and Housing Committee leadership.

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