Does the stimulus package provide help to address the mortgage crisis?
YES. The package would temporarily increase the size of mortgage loans, known as the conforming loan limit, from the current $417,000 to a maximum of $729,750. This will help home-owners in high-cost urban areas, like New York City, buy, sell or refinance their homes. The bill would also raise the cap on Federal Housing Administration mortgage loans from $367,000 up to $729,750, freeing up capital and helping people with subprime mortgages refinance out of these mortgages. Overall, the stimulus will strengthen the Federal government’s ability to ensure critically needed mortgage loans for low and middle income families by authorizing no or almost no down payment loans; direct the Federal Housing Administration to serve higher risk borrowers who would otherwise turn to predatory loans; and raise loan limits so that Federal government can help in Queens and the Bronx, where housing values are above the national average. Additionally, to help borrowers who may be facing either foreclosure
