Just a quick note about some recent regulatory changes affecting the real estate business.
The Federal Housing Finance Agency has announced the maximum conforming loan limits for home loans to be acquired by Fannie Mae and Freddie Mac in 2015. For much of the country, the conforming loan limit for a one-unit property will remain at $417,000 for 2015 with the limit at $625,500 in the highest cost areas. In 46 counties the limit will rise because those counties experienced increases in local home values. Both FHA and VA also announced their loan limits for 2015 and these agencies generally follow the conforming limits. However, under the Veterans Benefit Improvement Act of 2008, VA had allowed higher loan limits in some high cost areas. Because the Act expired in 2014, these limits must now be the same as conforming limits as well, unless Congress extends the law. VA will honor the higher loan limit after January 1, 2015 only if the sales contract and loan application are completely ratified before that date.
Meanwhile, Congress has acted on the expired Mortgage Debt Forgiveness Act, extending the tax exemption for short sales, as well as the deduction for mortgage insurance.
Contact me with any questions about these items. Here are the links with more detail on these actions: