Conforming loan amounts being raised back up?

This is circling the globe right now, as we speak. Barney Frank came out today and stated that part of the changes he would like to have made is increasing the conforming loan amount back to the levels it was at last year.
What does this mean to the market place? I think that it can’t hurt and that it will help.
Frank also mentioned that he would like this to become the new level and would work this year on making the loan amount permanent. That would be a great new conforming limit, $697,500 for San Diego County and $729,500 for Los Angeles County. That would be incredible for those of you who can prove income and have at least an 80% LTV in those areas.

My issue again is, why didn’t they do this from the start? Do you know how much drama we were in at the end of the year trying to get all those loans closed? Do you know that people who did not make it in time were penalized? The government can’t seem to get it right. I do like the fact that they are now trying to lead the charge for penalizing the banks for taking the money and not using it to lend but to buy other banks. Some used our TARP money to bonus themselves, wasn’t that nice. All this spending of TARP money will stop in the next round, supposedly. I spoke with a friend this week, at one of the big banks that got TARP money and made an acquisition with their capital. He said his phone has been ringing off the hook for refinances. It shows that we really have not changed that much as Americans. We voted for change, we want change, but we continue to do the same thing by calling these big banks for refinance money instead of giving the small businesses more of a shot. I am really confused, our fellow Americans are struggling. Congress steps in and says the way to save them is to save the banks. We take our tax payer’s money to save them and they take the money and put it in their balance sheet which freezes up the credit markets. We as homeowners and Americans then call them up for our loan to refinance our house and wonder why we are in this mess. It is similar to what is happening in Illinois. The governor is being impeached because he is being alledgly charged with the idea that he was trying to sell Obama’s seat in the Senate. The Senate is going to allow the guy he appointed to take the seat. Come on we should be outraged about this but we are not. How do you expect change to happen when we do the same thing and allow the same thing to happen? The first place to start is stop doing your loans with these big banks. You are telling them it is okay to do these things. We need to make a change with our business. This will get them to change what they do. Remember, small companies like Samuel Scott Financial Group. We can get every loan the large banks can and most times at a better interest rate. So remember, support your small businesses like us and really help to make a change. Call me or anyone at Samuel Scott, (858) 259-6070