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REAL ESTATE: FHFA holds pat on mortgage loan limits

REAL ESTATE: FHFA holds pat on mortgage loan limits

Put another crimp in the belt for housing unaffordability in California.

The Federal Housing Finance Agency recently said it will keep the 2016 maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac at $ 417,000 on one-unit properties, and raised the cap to $ 625,500 in only four high-cost regions.

Loan limits rose in San Diego, Napa, Monterey and Sonoma counties, according to the FHFA report.

California Association of Realtors president Ziggy Zicarelli said the state trade association is disappointed by the FHFA stance, saying it will hurt California’s housing market.

With home prices on the rise, Zicarelli said the $ 417,000 cap in counties that include Riverside and San Bernardino counties will exacerbate housing affordability and prevent tens of thousands of California homebuyers from a chance at home ownership.

Conforming loan limits determine the maximum amount entities like Fannie Mae and Freddie Mac can buy or guarantee loans for homebuyers. Loans issued above the cap typically require tighter underwriting standards and higher interest rates.

Higher costs make the homes less affordable, and can box would-be buyers out of new home purchases once financing, down payment requirements and debt-to-loan ratios are figured out.


CCL Holdings, a Southern California-based venture with real estate holdings in California and Hawaii, has acquired Two Bunch Palms in Desert Hot Springs, the resort’s chief executive Kevin Kelly said in a news release.

Tim Chum, vice president of CCL Holdings, said the firm will share the vision that was started by the previous owners as Two Bunch moves forward with its next phase of expansion.

Affiliate management company, JRNL Two Bunch Palms, will oversee construction of added hotel rooms, a spa and wellness center, second hot mineral springs grotto and swimming pool in 2016, Kelly said. The resort recently refurbished its hotel suites and restaurant. A solar panel farm was also installed to distinguish Two Bunch Palms as the first carbon-neutral resort in North America.

The sale to CCL by owners who included independent film producer Donald Kushner does not include undeveloped land around the resort.

Contact the writer: 951-368-9423 and dgruszecki@pe.com

Press Enterprise : Real Estate