U.S. Senate can either help the mortgage crisis or make it worse

The National Association of Realtors has been telling lawmakers in Washington, D.C., how the FHA loan limits are helping with our economic recovery. Evidence shows that the increased FHA/GSE loan limits are providing a much needed infusion of stability, liquidity and security into the market.

Making the higher loan limits permanent will increase investor confidence and the availability of safe, fair, affordable mortgage credit for borrowers and those wishing to refinance.

Higher loan limits will help stabilize mortgage markets and the economy as a whole.

As a realtor, I urge the Senate to support making permanent the FHA, Fannie Mae and Freddie Mac loan limits in the bipartisan Economic Stimulus Act, signed by President Bush last February.

The legislation raised the maximum loan limits in high cost areas to $729,750, but it expires on Dec. 31, 2008.

The limits help homeowners in 240 counties in 26 states and can help get our national economy back on track.

The House-passed housing stimulus bill, HR 3221, makes the $729,750 limits permanent. Senate bills cap the limits at $550,440.

Our 1.2 million members applaud the progress the Senate has achieved, but strongly believe that the final bill must include the House bill's loan limits.

The national mortgage market meltdown dramatically raised the cost and reduced the availability of mortgages in my market.

Higher limits are helping to revitalize local housing markets, providing safe, fair and affordable mortgages for our state's homeowners. The limits are also helping to stabilize our entire economy. Higher limits simply reflect market realities in highcost areas. A lower limit unfairly penalizes citizens based simply on geography.

Please support making the $729,750 loan limits permanent. Deborah Kniss Thousand Oaks Kniss is an agent for RE/MAX Olson & Associates.