How A Bill Becomes A Law, Live and Open for all to see ….What will the final version look like?

One Step Closer in the House >> A $150 billion economic stimulus package overwhelmingly approved by the House of Representatives Tuesday would raise the conforming loan limit and the upper threshold for FHA loan guarantee programs, from what was $362,790,  to as much as $729,750 in high-cost areas — but only until the end of 2008.

The bill would also restrict Fannie Mae, Freddie Mac and the Federal Housing Administration from guaranteeing or purchasing loans above 125 percent of the median home price — to be determined within 30 days of passing by the Secretary of HUD — for a given area. Passed overwhelmingly, in a 385-35 vote, HR 5140, the Recovery Rebates and Economic Stimulus for the American People Act of 2008, would, at least temporarily, change things dramatically.The Senate is debating an economic stimulus bill of its own, which could come to a vote this week. But the Bush administration has warned that the entire economic stimulus package could be derailed if the Senate attempts to add more programs to it.Sen. Charles Schumer, D-N.Y., said Tuesday he will call for an additional $500 million in emergency foreclosure prevention measures in the stimulus plan, Reuters reported.

Senate committee OKs stimulus package .. BUT, the Bill does not address raising conforming loan limit

The Senate Finance Committee approved a proposed economic stimulus package Wednesday (1.30.08) that would expand tax rebates in stimulus legislation approved by the House Tuesday but contains no provision for raising the conforming loan limit.

A full Senate vote on the bill is expected this week. If the bill is passed without further amendments, negotiations between House and Senate leaders to reconcile differences between the two versions of the bill would begin again.

The bill approved by the House in a 385-35 vote Tuesday — HR 5140, the Recovery Rebates and Economic Stimulus for the American People Act of 2008. 

The Senate bill did not include a provision of the House bill to temporarily increase the $417,000 conforming loan limit for loans eligible for purchase by Fannie Mae and Freddie Mac to 125 percent of the median home price in high-cost areas.

The House bill would also expand Federal Housing Administration loan guarantee programs, which are currently restricted to loans of $362,790 or less, to include mortgages of up to 125 percent of the median home price. Under HR 5140, the new limits for Fannie, Freddie and FHA programs would be capped at $729,750 and expire at the end of the year.

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