If consumers would like some positive proof of what the National Association of Realtors does to promote homeownership, the recent agreement between the White House and House leaders to include higher conforming loan limits in an economic stimulus package is a perfect example.

The NAR has been lobbying since 2005 to raise the limits on FHA loans to $625,000 because high-cost areas such as California and Florida have many areas where the median home is out of conforming range. Relief on the coasts could be enough to calm the markets across the nation.

Any loan that doesn't conform to government guarantee limits costs more than a conforming loan, so when the subprime crisis came to a head last summer, all non-conforming loans were curtailed by lenders, including "jumbo" loans. Jumbo loans serve consumers borrowing more than $417,000 to buy a home.

The NAR through its public relations and its lobbyists have importuned the government with figures that suggest that a higher loan limit would accomplish a number of objectives:

• lower interest payments for consumers who get new "GSE jumbo" loans

• reduce the supply of homes on the market by one to one-and-one-half months

• strengthen home prices by two to three percentage points

• reduce foreclosures by 140,000 to 210,000

• stimulate an additional 348,000 home sales.

• increase economic activity by $42 billion.

The reason this will make such a difference is lending is clogged right now. Banks don't want to loan money and not be able to get more money, so having higher limits on FHA loans means that government-sponsored enterprises like Fannie Mae and Freddie Mac will guarantee those loans. That means the loans can be packaged into securities for investors, and investors will buy them because most of the risk has been taken out of the equation.

But the new limits aren't a done deal yet. The Bush administration would like to see higher loan limits coupled with closer oversight of Fannie Mae and Freddie Mac.

Those naughty siblings are still recovering from years of accounting fraud and upper management shuffling, so the government wants to make sure the GSEs can handle even more responsibility.

The House has passed a GSE reform bill, but the Senate hasn't and that could cause significant delays. Lawmakers promise quick action, but homeowners and buyers are still waiting.

Regardless of what happens or when, we wanted you to know that Realtors are spending their money trying to help you buy homes.

Published: January 28, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.