CALL FOR ACTION UPDATE: SENATE PASSES STIMULUS PACKAGE WITH INCREASED LOAN LIMITS
Thanks in part to the lobbying by C.A.R. and NAR members; the Senate passed their version of an economic stimulus package on Thursday, February 07, 2008. The Senate version expands rebate checks for seniors and disabled veterans and includes the same increases to the conforming loan limits for both GSE and FHA found in the House stimulus package. The House has already announced that they plan to vote on the Senate version of the stimulus package and expect to quickly pass the stimulus package with a bipartisan vote. The President is expected to sign the legislation early next week, ahead of the Congressional self-appointed deadline of February 15th. The increase in the conforming loan limits will last through 2008, but C.A.R. and NAR continue to lobby for FHA and GSE reform, making these increases permanent.
Thank you to all of you who either called Senator Boxer late last year or responded to last week’s Calls-for-Action requesting that increases to FHA and GSE loan limits be included in the Senate’s version of the stimulus package. Once again, you’ve made a difference.
COMING UP THIS WEEK IN SACRAMENTO
The legislature has been conducting a limited number of hearings over the past few weeks. Currently, the legislature is in the middle of the bill introduction process that will conclude February 22.
This week, C.A.R. will support if amended SB 1055 (Machado) Cancellation of Mortgage Indebtedness, which is scheduled to be heard by the Senate Revenue and Taxation Committee on February 13. Recently, the federal government enacted the Mortgage Debt Relief Act of 2007 that permits 3 years of mortgage debt relief by not requiring borrowers to pay income tax on debt forgiven in a “short” sale. This statute will apply to tax years from January 1, 2007 through January 1, 2010. SB 1055 would provide limited conformity to federal income tax laws by mortgage debt relief only for tax years 2007 and 2008. C.A.R. will support SB 1055 if it is amended to provide the same 3-years of debt relief that the federal statute allows.