To the chagrin of some industry participants and the elation of others, the Senate voted in favor of an amendment that would reinstate the heightened conforming loan limits for mortgage loans backed by Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA).

The amendment, introduced by Sens. Johnny Isakson (R-Georgia) and Bob Menendez (D-New Jersey), passed late Thursday with a 60 to 38 vote.
The conforming loan limit was previously increased on a temporary basis to $729,750, but the rate expired September 30 and returned to its original rate of $625,500.
If the House also approves, the conforming loan limit will rise again to $729,750 and remain there through 2013.
Representatives from the National Association of Home Builders and RE/MAX spoke out in their support of the Senate’s decision.
“The National Association of Home Builders [NAHB] commends the Senate for approving” the amendment, stated Bob Nielson, chairman of the NAHB.