Andrew Roth - November 10th, 2011
KEY VOTE ALERT
“NO” on “Minibus” with Re-instated Conforming Loan Limits for Fannie, Freddie, and the FHA
The Club for Growth urges all members to vote “NO” on the upcoming “minibus” conference report. We are specifically scoring this bill if it includes the higher conforming loan limits for Fannie Mae, Freddie Mac, and the FHA. If the conferees strip out this big-government rider, then the Club will re-assess the bill for consideration of a key vote. A vote on this conference report is scheduled for next week. A vote on this bill will be included in the Club’s 2011 Congressional Scorecard.
This housing rider would reinstate the recently expired conforming loan limit to $729,750, an increase from the previous limit of $625,500.
By increasing the limit, the government increases the risk that taxpayers will end up on the hook for non-performing loans. Government housing subsidies greatly contributed to the 2008 housing crisis. We should not make that mistake again expecting a different result. A better approach would be to end the subsidies completely to avoid future bailouts and market distortions.
Our Congressional Scorecard for the 112th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.