No Vote on FHA Loan Limit

Senate Majority Leader Trent Lott, R, Miss., pulled the VA-HUD appropriations bill off the floor of the Senate Tuesday evening just before the start of debate on Federal Housing Administration loan limits.The sudden move came amid partisan bickering over health care issues, but it appears opponents of the FHA loan limit increase did not have the votes to block it. The VA-HUD appropriations bill (S. 2168) is now in limbo, however, and a vote on blocking the hike in the FHA loan limit will be delayed for at least a week. As approved by the Senate Appropriations Committee, S. 2168 would increase the FHA loan limit in low-cost areas to $109,032 and in high-cost areas to $193,620. The current floor is $86,317 in low-cost areas and the ceiling is $170,362 in high-cost areas. An amendment by Sen. Don Nickles, R, Okla., and Sen. Herbert Kohl, D, Wis., would keep the FHA ceiling at $170,362 and increase the Ginnie Mae guaranty fee from 6 basis points to 12 bp, which penalizes FHA servicers. That amendment is now on hold until Senate leadership decides to take up the VA-HUD appropriation bill again.