C.A.R. President Kevin Brown responded to a Wall Street Journal editorial last week on housing finance reform. The editorial suggests that higher loan limits are not needed and that at a current limit of $625,500, with a 20 percent down payment, a buyer could purchase a home costing $780,000, “a mansion in most places.” The editorial further states that the government is subsidizing wealthy buyers with the higher limit.
In a letter to the editor, Kevin Brown writes that the editorial is “a continued depiction by many policy makers and pundits that higher loan limits have allowed Californians to live in 10,000-sqare-foot mansions at taxpayers' expense. While a $780,000 house may be a mansion in Texas, Alabama or other states, in California that buys a 2,400-square-foot house in Orange County or a 1,600-square-foot house in the San Francisco Bay Area—hardly mansions.”