Obama Reinstates Higher FHA Mortgage Loan Caps

Law360, New York (November 18, 2011, 1:27 PM EST) -- President Barack Obama on Friday signed a bill to reinstate higher loan limits for mortgages insured by the Federal Housing Administration, less than two months after the limit had been reduced.

Both houses of Congress passed a broader spending bill Thursday that included a provision to restore the maximum size of a mortgage the FHA can back in more expensive cities to $729,750, instead of the lower $625,500 instituted on Oct. 1. The new provision will last until December 2013.

“The expiration of these limits was...
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