As most all you might already know, Congress recently passed, and President Bush signed, a $168 billion Economic Stimulus Package. Included in the package is an increase to the standard government-sponsored enterprises (GSE’s) and Federal Housing Administration (FHA) maximum loan limits. However, due to the extensive product, pricing, and delivery implications of the legislation (within Fannie Mae, Freddie Mac and the FHA), the increased loan limits will likely not be available for at least sixty days. I will be sure to post any changes as they happen. Specific details of the Stimulus Package are not yet finalized; however, below you will find an overview of the requested changes:

Overview GSE/FHA loan limit increases are temporary and will be terminated on December 31, 2008.

GSE/FHA loan limits will increase to the lesser of (a) 125% of the area median home price or (b) $729,750. The increased loan limits will be available only in high-cost areas (such as ours) – these “high-cost areas” will be defined by HUD in the next thirty days. Early indications are that only a few metropolitan statistical areas (MSAs) will be impacted – the majority of which will be located in California, South Florida, Washington D.C. and New York City.

1. The US Department of Housing and Urban Development (HUD) must define which high cost areas or MSAs will be eligible for the increased loan limits (this is expected to happen within the next thirty days).

2. Fannie Mae and Freddie Mac must determine and communicate what products will be eligible for delivery under the increased loan limits, clearly define the underwriting guidelines that must be followed and compute how these loans will be priced. Additionally, Fannie Mae and Freddie Mac will have to determine how lenders will deliver these conforming-plus loans.

3. Lenders will have to work to build new products and implement all systems and guideline changes to ensure a seamless transition. Once it is determined how the legislation will be applied and have clear guidance from Fannie Mae and Freddie Mac, Lenders will have to implement these changes in a timley fashion.

I came across this article and thought I would share…..

On January 29th the Santa Clara County Board of Supervisors approved a new Emergency Response and Disaster Preparedness 9-1-1 fee that will be paid by each telephone subscriber in the county. If you have a cell, home or office phone line you can expect to start seeing the fee on your monthly bill by May of this year. The 9-1-1 fee was first proposed as part of Santa Clara County’s 2007-08 Budget by the County Executive. At January’s meeting the final vote on the fee was 4-1. Supervisor Pete McHugh voted no because he believed this is not a fee but a tax that voters should have the right to vote on.The 9-1-1 fee will be imposed on every telephone line within the county, which provides a telephone subscriber with direct or indirect access to the county’s emergency communications response and disaster preparedness services. The fee will recover a portion of the county’s costs to continue to operate and maintain its 9-1-1 emergency communications functions and to continue countywide efforts to mitigate against, prepare for, respond to and recover from disasters. 

The components of the fee will vary by city depending on the level of emergency communications services received by the community. Fees will also be charged at different rates for single access lines, trunk lines and high capacity trunk lines to reflect differences in the benefit derived by each type of access.  Trunk lines are most often used in offices and each represent approximately 24 phone lines.  Prices for a single line will range from as little as .20 to $1.00.  The lowest trunk line fee is $1.80 and can go over $5

Annual revenue from fees is estimated at $9,368,179. Last year, the county faced a several hundred million dollar budget deficit, and is expected to do the same this year. This fee has already been accounted for as revenue in this year’s budget and will help ease the budget deficit for next year. .

Source: Silicon Valley Assouciation of Realtors.