Hi Patrick, I've been an avid reader of your site for quite some time now. Thanks for providing this great service! Re Fannie/Freddie, I think it's too late to write to our Representatives, but it's not too late to blast the Senators. I just sent this to Boxer and Feinstein via their websites. Maybe if enough people send similar e-mails, they'll re-think the insanity. Best, Beth E-mail to Senators: Please, please, please vote to NOT raise the Fannie and Freddie cap on home loans to $625K. There are a few of us here in over-priced California who didn't fall for the hype, didn't buy a house they couldn't afford, and have been waiting on the sidelines all these years for California home prices to fall back down to earth. If you raise the Fannie/Freddie limits, not only does it expose the government (and prudent taxpayers like me!) to more potentially bad loans, it also artificially props up prices that need to come down. Look at the numbers. California is the least affordable state in the nation. Median home prices in Southern California are 11xs median income. The house prices need to fall so ordinary Californians--not just millionaires and idiots/gamblers who take out adjustable rate mortgages and then are surprised when the rate goes up-- can live the American dream. Please, please, please vote to NOT raise the Fannie and Freddie loan caps and give the rest of us Californians a fighting chance!
Patrick's Letter, sent to Senators Boxer and Feinstein:
Dear Senator: Please show the good judgement to refuse to support raising GSE loan limits. First, raising such limits directly harms most of your constituents by keeping prices too high. We don't need more debt. We need lower prices. Second, Fannie Mae and Freddie Mac have proven themselves untrustworthy even with basic accounting. It is morally wrong and unwise to support increasing the jumbo loan limits. Please don't do it. Patrick Killelea Owner of patrick.net, with 16,000 daily readers, most of whom are California residents, closely watching your actions now.