Senator Boxer: New Loan Limits Will Help Thousands of Californians

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March 5, 2008 -- Washington, DC – U.S. Senator Barbara Boxer (D-CA) made the following statement in response to temporarily increased government-backed loan limits for California, released by the Department of Housing and Urban Development today:

“The increased loan limits for California will help thousands of California families to refinance and keep their homes.

“California previously led the nation in FHA loan usage, but saw its FHA loan volume drop by 98 percent between 2001 and 2006 as housing prices skyrocketed. Raising the loan limit makes FHA loans a viable option again for California families. We worked to include the loan limit increase in the stimulus package, and I will work with my colleagues to make the increase permanent.

“Likewise, the increase in loan limits for Fannie Mae and Freddie Mac will mean that more families will qualify for conforming loans and will hopefully see lower interest rates.

“I am also disappointed that Senate Republicans have blocked efforts to pass a measure to provide further assistance to families struggling to keep their homes. That bill, the Foreclosure Prevention Act, includes many of the suggestions that my staff and I heard from community leaders at a series of roundtable meetings in California this past January. It increases funds for pre-foreclosure counseling and it provides critical funds to allow local communities to maintain foreclosed properties. This is a bill that can help millions of families avoid foreclosure, and I hope that we can overcome the Republican obstructionism and pass the measure.”

Source: Senator Barbara Boxer