House Panel OKs FHA Loan Limit Hike

The House Appropriations Committee Thursday night approved an increase in the Federal Housing Administration loan limit as part of a comprehensive VA-HUD spending bill.The legislation raises the FHA loan ceiling from $170,362 to $197,620 for high-cost areas and the loan floor from $86,317 to $109,032. The new limits proposed in the House by Rep. Mark Neumann, R, Wis., mirror increases recently approved by the Senate Appropriations Committee. The Appropriations Committee considered a second amendment by Rep. Neumann that would have directed HUD to issue a policy statement on the legality of yield spread premiums. However, the amendment was withdrawn. Appropriations Committee Chairman Rep. Robert Livingston, R, La., promised to discuss the YSP issue with Mr. Neumann when the House and Senate bills reach the conference stage. The full House and Senate must now vote on their respective VA-HUD spending bills, but that likely will not occur until the middle of July.