Dumb: Senate passes amendment increasing Freddie, Fannie loan limits to $729k

Here we have a perfect example of why a do nothing Congress isn’t always a bad thing, especially when economic illiterates are in the majority in the U.S. Senate.

This is sheer insanity.

The U.S. Senate adopted a measure that would raise the maximum size of a home loan backed by mortgage companies Fannie Mae, Freddie Mac and the Federal Housing Administration to $729,750.

Senator Robert Menendez, a New Jersey Democrat, offered the increase as an amendment to a spending bill today. The measure was approved less than a month after the limit on so-called conforming loans was automatically reduced to $625,500.

“If we want to get the economy moving, the housing market has to be part of it,” Menendez said tonight on the Senate floor.

The Senate adopted the amendment 60-31. The amendment required 60 votes for approval and was offered during the chamber’s consideration of a package of spending measures. If the Senate passes the underlying bill, the House would then have to vote for it to become law.

The higher limits, should they be signed into law, would apply until Dec. 31, 2013. Lawmakers would pay for the cost of the higher limits by imposing an annual fee on the loans of 15 basis points of the unpaid principal balance of the mortgage.

The limits, which vary by locale, apply to loans backed by the FHA and government-controlled mortgage companies Fannie Mae and Freddie Mac, which together buy or guarantee about 90 percent of all residential home loans.

Here is the none-too-surprising list of RINO Senators who went along with this idiotic bill: Roy Blunt (MO), Scott Brown (MA), Saxby Chambliss (GA), Lindsay Graham (SC), Dean Heller (NV), Lisa Murkowski (AK), and Olympia Snowe (ME).

Hat tip: Amanda Carpenter.

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  • Makes you wonder who’s new loan request was $729,750 doesn’t it?

    • It must have been Rory, Harry Reid’s dimwit spawn.

    • Anonymous

      that is such a random number. Its too bad because I really need a loan for $730,000. I guess, I will just have to pay the extra $250 sigh… I don’t understand, why should I actually have the money to back up my purchases? Why can’t I pay off my expenses in the future and live with tons of debt? That never causes any trouble

      • Funny. But I think the whole point of getting a government loan is that there is no down payment. You would just muck up their system if you forked over a $250 down payment.

        • I refinanced my house 2 years ago with a local small bank because my initial lender (a State bank out of Texas) went belly up and my loan was taken over buy the fed. They kept sending me late notices (I have always payed my home loan 10 days early on purpose). Occupy Wall Street my a$$. Anyway, they sold it to Fannie the next day! At least the local bank is the one servicing it now, though. It absolutely sucks that I have no control over whether or not the government owns my property unless I pay off the damn loan. Taking donations 🙂

    • Sounds like a precise number for a specific individual.

  • Anonymous

    And the housing bubble continues…..
    And the beat goes on…..

  • It’s a typical government solution – throw more money at the problem. The housing bubble burst not because people bought houses they couldn’t afford, but because the government didn’t provide guarantees for large enough loans. Everything is fixed now. We can all stop worrying. /s

  • Anonymous

    DOA in the House folks

  • Anonymous

    It is unfair that the Congress gets lumped in with the leftist Senate.

  • Until the rino’s are moved to the extinct list, and the liberals have been removed from the majority we are just screwed.

  • Maxsteele

    These guys didn’t learn the first time! The crazy thing about it is that there were some republican senators that also voted “yes” time to vote them suckers out, out, out. Even democratic politicians with any economics knowledge know this was the needle that burst the bubble. Here are the names of the republicans that voted “Aye”: Graham -SC, Murkowski -AK, Heller -NV, Blunt -MO, Isakson -GA, Brown -MA, Snowe -ME, Chambliss – GA. Of course the 38 that voted “Nay” were all republicans.

  • Yeah you just had to know that John McCain’s little sister Lindsay would be involved in the new ninja revenue stream/bubble. Freakin’ Progressives. First they want to put the first time home buying poor into houses they couldn’t afford and now they want to provide mortgages to the wealthy.

    There is a housing glut because of overbuilding. Now we have a home building industry still building when the foreclosed homes aren’t moving. How do you restart an industry when they have overproduced?

    Perhaps Newt could issue an Executive Order on day one to cut all funding to Freddie and Fannie before they drop us into another money pit.

    Someone please E-Verify Menendez.

  • uhm, call me an idiot- but isn’t this what broke the bubble in the first place- the government demanding banks loan for 700,000 dollar homes to people who make 8 bucks an hour? So now they’re doing essentially the same thing? Or did I just not read this right. Sorry, I’m in the middle of school lessons with a minute break. OK Ill shut up now.

  • Anonymous

    I can’t wait to see Snowe and Murkowski out of work….

    • Anonymous

      apparantly, the “good” people in Maine and Alaska disagree. Idiots all.

  • Anonymous

    Just what is it these people aren’t understanding? I guess it doesn’t matter where you are, who the people are that you’re dealing with, there are always those who have such thick skulls nothing penetrates. It’s time to clean the slate and start all over again, anew. With an understanding that we, the citizens, are the boss. And the majority rules.

  • Anonymous

    Another of many bills that need to be repealed.

  • Anonymous

    Menendez is my senator from NJ (sigh) and is up for reelection in 2012. The Sheeple here will vote him back in.
    Idiot and idiots!

    Doherty (early call on my part) Senator from NJ 2012!

  • Anonymous

    Unfortunately, I live in NJ. This man and his counterpart Loudenburg are embarrasments to our state. If it wasn’t for family I’d relocate in a heartbeat!

    • Anonymous

      Not embarassments but the run of the mill typical mainstream if thought. Look Christi won but not by any landslide. The embarassment is the voting public.

  • Anonymous

    Menendez is from Hudson County – what do you expect?

    In Hudson County elections go something like this…

    Population eligible to vote – say 600,000
    60% don’t vote.

    Election results
    Democrat candidate 340,000
    Republican candidtate 999

    The republican counter only has a 3 digit max.
    And yes the democrat voters do vote early and often.
    Death is no excuse to stop voting.

    Yes, I made up the numbers. I think they’re probably somewhat close to reality. But you get the idea.

    Hopefully you will get an idea as to how places like Hudson County keep the democrats in power. Of course they know how to collect the proper gratuities for their services.

  • Anonymous

    they have not “officially” collapsed the system yet…..need more time and negative depreciation.

  • If this is an amendment to an existing bill; then the imposition of a new annual fee on loans of 15 basis points of the unpaid principle balance of the mortgage applies to who? Is this a modification to loans that existed pre-amendment? If so, could this trigger another housing collapse? This is an honest question. I don’t know the answer. Just curious.