Senate Passes $150 Billion Stimulus Package – Conforming Limits Going Up

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Updated below with conforming loan limit increase information.

The Senate passed a $150 billion stimulus package in an attempt to avert a mortgage-crash fueled recession. The bill now goes to the President for signing. He is expected to pass the Republican-favored bill quickly.

From the Market Watch story on the stimulus package:

The plan would give tax rebates of up to $1,200 for households, with $300 more for each child. The full rebates would be sent to individuals with incomes under $75,000 and to families with incomes under $150,000, including seniors and disabled veterans. The rebate would be phased out for those earning more.

The bill also has provisions to prevent undocumented immigrants from receiving tax rebates.

The plan would also cut business investment taxes by $44 billion for one year. It would raise the caps on mortgages issued by the Federal Housing Administration or purchased by Fannie Mae and Freddie Mac.

~~No mention of the final increase in the conforming loan limits for Fannie Mae and Freddie Mac but as soon as I can dig it out of the news I’ll have it here.~~

Update: A big thanks to reader Don for the info from Bloomberg on increasing conforming loan limits as part of the stimulus package:

Fannie Mae and Freddie Mac, the government-sponsored mortgage finance companies, will be allowed to buy loans worth as much as $729,750 for loans made between July 31, 2007, and Dec. 31, 2008, an increase over the current $417,000 loan limit. The move may help struggling homeowners refinance large mortgages at a lower interest rate. It will also allow the Federal Housing Administration to insure loans as high as $729,750 in expensive markets.