It has been lonely. I've been "that guy" for a long time, arguing that much of what is wrong with the housing sector of the economy would not be fixed with the current mortgage related policy and legislation emanating from Washington. I thought I was the only person in the world who thought we could do something very simple, more about it later, and make a significant impact on our ailing housing sector.

The Obama administration's "Making Home Affordable" plan, announced back in April, has helped some. You may have read about it here this spring.

We have been able to refinance a number of our clients who previously could not. I had one client, a very nice young woman, stuck for months because the value of her home had declined to the point that her loan to value ratio (LTV), had jumped over the 80% mark. After months of waiting for the administration's program, we were finally able to get her a wonderful 4.5% interest rate on her new loan.

But....

There are so many people out there not helped by any of these new initiatives. They are the holders of so-called "jumbo" loans. Loans that are higher than the conforming limit of $417,000. Most are stuck at rates significantly higher than those available today. Stuck because the secondary market for jumbo loans basically went away in the fall of 2007.

I know what you're thinking. "I'm supposed to feel sorry for the rich guy with the $1,000,000 house?" You aren't. But think about it this way. If the guy with the $500,000 house can't sell it to buy the rich guy's house, then the young couple can't sell their $200,000 house to buy the $500,000 house either. Etc. Etc. Etc.

I thought it was simple. Just raise the conforming limit for Fannie Mae and Freddie Mac from $417,000 to something like $700,000. It's already allowed in parts of the country, and it's beyond silly that it's not allowed everywhere.

Finally, the other day, I found a comrade, an ally, a soul mate if you will. David Adamo, chief executive officer of Luxury Mortgage, was quoted in a mortgage trade rag advocating just that.

According to the National Association of Realtors (NAR), 14 states have 11% of homes valued at $500,000 or more. Yes, California and New York are on the list. But so are Delaware, Illinois, and Oregon.

So will policy makers in Washington listen to Adamo? I hope so.