Friday, July 22, 2011

Reports: Government considering renting REOs, Extending Conforming Loan Limits

by Bill McBride on 7/22/2011 09:30:00 PM

From Nick Timiraos at the WSJ: Government Considers Ways to Rent Foreclosed Homes

The Obama administration is examining ways to pull foreclosed properties off the market and rent them to help stabilize the housing market, according to people familiar with the matter.

While the plans may not advance beyond the concept phase, they are under serious consideration by senior administration officials because rents are rising even as home prices in many hard-hit markets continue to fall due to high foreclosure levels.
I'll have some comments on this over the weekend.

And from Jon Prior at HousingWire: White House to tackle housing reform after debt ceiling fight
A spokesperson for Rep. Barney Frank (D-Mass.) told HousingWire Friday the Obama administration has begun work on a proposal to extend the conforming loan limits, which are set to expire in October. ... Rep. John Campbell (R-Calif.) and Rep. Gary Ackerman (D-N.Y.) introduced a bill last week that would extend the elevated loan limits for another two years.
Campbell represents a district in Orange County that will probably be impacted by the lower conforming limits.

Note: Here is a Spreadsheet with the current loan limits and the new loan limits by area (sorted by largest change in limit).

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