today issued the following statement in response to the Federal Housing Finance Agency's (FHFA) announcement to keep the 2016 maximum conforming loan
limits for mortgages acquired by Fannie Mae and Freddie Mac at $417,000 on one-unit properties and a cap of $625,500 in high-cost areas.
Fannie Mae and Freddie Mac soon followed suit, reducing the waiting period for getting a conforming loan
after bankruptcy from 4 years to 2 years.
Each year, FHA recalculates its national loan limit based on a percentage calculation of the national conforming loan
Recent changes in the conforming loan
limits provide a useful natural experiment to study the price impact of TBA eligibility, even for agency MBS pools that already enjoy a credit guarantee.
The maximum loan-to-value ratio is 70 percent on conforming loan
It turns out, the quasi-governmental Fannie Mae and Freddie Mac played a major role in the mess, as did private mortgage issuers, conforming loan
limits and lax credit guidelines.
Fannie Mac's decision to utilize the temporary increase in conforming loan
limits to purchase jumbo-conforming mortgages under the same pricing structure accorded portfolio purchases of regular conforming loans
will help home buyers in high-priced markets.
5 percent to $295,573 since last October, the Office of Federal Housing Enterprise Oversight said the maximum 2008 conforming loan
limit for single-family mortgages purchased by Fannie Mae and Freddie Mae (the Enterprises) will remain at the 2007 level of $417,000 for one-unit properties for most of the United States.
The Veterans Benefits Improvement Act of 2004 tied increases in the VA guaranty to the Federal Home Loan Mortgage Corporation's conforming loan
limit, allowing VA to keep pace with rising home values.
The 2005 conforming loan
limits for first mortgages/family homes in the Lower 48 is $359,650, but in Alaska is $ 539,475.
The higher Fannie Mae, Freddie Mac, and FHA conforming loan
limit of $729,750 expired Oct.
The article explains, "While you can get approved for a conventional loan that does not fit within the conforming loan
limits, your lender would not be able to resell your nonconforming loan to Fannie Mae and would then be taking on greater risk.