has endorsed the recently announced increase of conforming loan
limits by the Federal Housing Finance Agency (FHFA).
The researchers estimate differences in interest rates and mortgage origination volumes in the conforming and non-conforming mortgage markets (including both "jumbo" mortgages that exceed conforming loan
limits and other non-conforming loans
that have over 80 percent LTV ratios) during Federal Reserve market interventions from 2008 through 2014.
BANKING AND CREDIT NEWS-January 26, 2016-Redwood Trust restructures conforming loan
M2 EQUITYBITES-January 26, 2016-Redwood Trust restructures conforming loan
The baseline maximum loan limit for loans eligible for purchase by Fannie Mae and Freddie Mac remained unchanged in 2016, but in 39 high-cost areas the conforming loan
limit was increased.
FHAs minimum national loan limit floor is set at 65 percent of the national conforming loan
limit of $417,000.
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.
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.