NAR Welcomes California Governor’s Support for Increasing Mortgage Loan Limits; Adds to Growing Sentiment

WASHINGTON, January 24, 2008 – The following is a statement by National Association of Realtors® President Richard F. Gaylord and Chief Executive Officer Dale Stinton:

 “NAR commends California Gov. Arnold Schwarzenegger for voicing his support for increasing the conforming loan limits provided by Fannie Mae and Freddie Mac in high-cost areas,” said Gaylord. “Gov. Schwarzenegger is the first governor to step up and send a letter to Congress, and in urging them to act, he joins a growing list of influential leaders, including the U.S. Conference of Mayors, expressing concern for the people of California and others affected by high housing costs, to convey the need for immediate federal changes to help return the health of the real estate market and the national economy.

“To help these people, NAR has been working tirelessly on this issue with Congress and the Bush administration. In high-cost states, many home buyers with good credit could save $3,000 to $5,000 per year if they weren’t forced into the jumbo mortgage market. We urge Congress to act quickly to give buyers in these high-cost states access to more affordable, government-sponsored loans. Currently, only families in lower cost areas are able to qualify for these types of affordable loans. Such a move would stimulate home sales and help stem the rise in foreclosures, reducing the number of foreclosures from anywhere between 140,000 and 210,000.”

Stinton added, “Increasing the conforming loan limits is a truly meaningful economic stimulus and should be enacted quickly. We call upon every governor and mayor in the country to show the same leadership and support as Gov. Schwarzenegger has demonstrated.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.