FHA: PUSH THE LIMIT BEFORE FRIDAY

Many Florida Realtors have discovered that HUD's recent loan limit increases through FHA, Fannie Mae and Freddie Mac didn't make much of a difference locally, in some cases rising by only a few thousand dollars. However, you can register a complaint - but only if you do so by this Friday. "We have been notified by several members of the Florida Congressional delegation that they will be happy to intervene on your behalf with HUD if you do file an appeal," says FAR Vice President of Public Policy John Sebree. "We would also encourage you to copy your members of Congress on any appeal. While HUD hasn't provided more guidance, we think that the more independent, documented data on home sales prices you submit, the more likely HUD will be to grant the appeal. For areas where HUD grants an appeal, the change will affect both the FHA and the GSE limits." The standard procedures for appeals are stated in Mortgagee Letter 2007-01: http://www.realtor.org/GAPublic.nsf/files/hud_mortgagee_letter_010307.pdf/$FILE/hud_mortgagee_letter_010307.pdf . "Each request for appeals must contain sufficient housing sales price data, listing one-family properties sold in an area, to represent home prices across 2007," says Sebree. "HUD is using an entire year for the basis of its decisions because of disruptions in the mortgage market that have affected home prices in recent months. All such requests will be handled exclusively by FHA's Santa Ana Homeownership Center." That address is:
U.S. Department of Housing and Urban Development
Santa Ana Homeownership Center
Santa Ana Federal Building
34 Civic Center Plaza, Room 7015
Santa Ana, CA 92701-4003
Attn: Program Support/Loan Limits