North Carolina REALTOR® Capitol Hill Update

On December 15, 2014

fha loan 2015FHA 2015 Loan Limits Released:

On Dec. 5, 2014, the Federal Housing Administration (FHA) released its 2015 Loan Limits.  FHA’s calculation for maximum loan limits in high cost metropolitan areas of the country will remain at the 2014 level of $625,500. The standard loan limit for lower cost metropolitan areas will remain unchanged at $271,050. For more information please visit


House Passes One Year Extension of Mortgage Cancellation:

On Dec. 3, 2014, the House of Representatives passed H.R. 5771, the Tax Increase Prevention Act of 2014, by a strong bipartisan vote of 378-46.  The Senate has not yet acted on the tax extenders, but is expected to do so the week of Dec. 8.  Please visit the Mortgage Debt Cancellation Relief page on for any developments in the coming week.


FHA Releases Actuarial Report

On Monday, Nov. 17, 2014, FHA released its Annual Report to Congress and the FY 2014 Independent Actuarial Assessment of the FHA Mutual Mortgage Insurance Fund.  The review shows that the fund has gained $6 billion over the past year and the current economic net worth has improved to a positive $4.8 billion.  FHA’s current cash reserves to pay claims total $40 billion.  The capital reserve ratio is required to be at or above 2 percent and FHA is expected to meet that obligation by 2016.  Improvements can be attributed to:

  • Serious delinquency rates for the active portfolio fell from 8.2 percent in FY 2013 to 7.1 percent in FY 2014.
  • Recoveries on dispositions have improved by more than 5.5 percent of the loan unpaid balance at default.  In particular, the recovery rates for the Distressed Asset Stabilization Program (DASP) improved to 64 percent in FY 2014 from 49 percent in FY 2013.
  • FHA made program changes to HECMs, such as lowering principal limit factors, changes to upfront MIP pricing and limits on the types of Fixed Interest Rate mortgages that can be insured through HECM.


For more information please visit


Dear Colleague Letter on TRIA

On Monday, Dec. 1, Rep. Stephen Fincher (R-TN) released a “Dear Colleague” letter to the leadership of the House of Representatives urging them to support a long-term reauthorization of the Terrorism Risk Insurance Act of 2002, or “TRIA.” The letter, which has the signatures of forty-seven other Members of Congress, reiterates how important TRIA is to the economy, and explains that a short-term extension, as has been suggested by some Members, would only prolong the problem. Unless it is reauthorized, TRIA will expire on Dec. 31, 2014. For more information please visit


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