Welcome!




Expand Your Education with These Courses from
A Consumer Advocate Approach to Real Estate: Course 1.
Time Management: Skills for Sales Success: Part Two.
Accredited Buyer's Representative.
ACE: Purchase Reverse Mortgage Course.
Bundle 2: CIPS Elective Courses (US Version).

Plan Would Reduce Fannie, Freddie Loan Limits to $400,000 in Most Markets

Have a comment on this article? Share on Facebook!

By Mary Ellen Podmolik

mortgage_loan_app_calculator (MCT)—The Federal Housing Finance Agency (FHFA) on Monday detailed a plan to reduce the size of home mortgages that Fannie Mae and Freddie Mac could purchase.

Under the proposal issued for public comment, the FHFA in most markets would cut the loan purchase limit for conforming loans by 4 percent, to $400,000 from $417,000. In high-cost areas, the current loan limit of $625,000 would be trimmed to $600,000.

It was just last month that the FHFA said it was keeping the current loan limits in place. But any change by the agency, the conservator of Fannie Mae and Freddie Mac, would follow in the footsteps already by the Federal Housing Administration.

In reducing the government’s exposure in the mortgage markets, the federal government is hoping that private investors will step in, particularly as housing markets improve.

The FHA last month announced new, lower single-family loan limits for 650 counties nationally, beginning Jan. 1.

If the lower limits on Fannie Mae and Freddie Mac mortgages were in place in 2012, the effect on the market would be “modest,” according to the agency’s analysis. Nationally, about 170,000 mortgages backed by Fannie Mae or Freddie Mac, or 2.9 percent of the mortgages acquired in 2012, had original loan balances above $400,000 limit proposed, the analysis found.

The research also showed that many of the borrowers potentially affected by such a change would be in Illinois, California, Texas, Florida and Colorado.

The FHFA said any changes it makes would not take effect before Oct. 1.

©2013 Chicago Tribune
Distributed by MCT Information Services

 

Realtor® University Happenings: Interested in becoming a “green” real estate professional? Green 100: Real Estate for a Sustainable Future, the first day of curriculum for NAR’s Green Designation, serves as the foundation for this designation program. This course helps students understand the role of real estate in finding the balance between people, planet, and prosperity. Learn more here.

Want instant access to great articles like this for your blog or newsletter? Check out our 30-day FREE trial of REsource Licensed Real Estate Content Solutions. Need easy stay-in-touch e-Marketing solutions too? Try Pop-a-Note for 99 cents!
Join RISMedia on Twitter and Facebook to connect with us and share your thoughts on this and other topics.




Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Copyright© 2014 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com

Our Latest News >>