Mortgage lenders won and lost in the bill (H.R. 5679) to appropriate funds for the departments of Housing and Urban Development and of Veterans Affairs. The lenders got higher loan limits for Federal Housing Administration-insured loans plus elimination of HUD authority to limit the amount of closing costs that can be financed.
They lost on the VA side, however, when the House accepted Senate language that will increase the incentive for the VA to pay a lender only the guarantee fee and make the lender responsible for disposal of the property. Unlike some of the other 13 appropriations bills, President Bush is expected to sign this one.