NAR on FHFA’s Loan Limits: Don't Drop Them
October 10, 2013
The National Association of REALTORS® is garnering media attention for its call urging the Federal Housing Finance Agency to delay reducing the loan limits. The Wall Street Journal recently spotlighted NAR’s position on the issue.
In August, the FHFA announced it was weighing a reduction in the maximum loan amounts that mortgage giants Fannie Mae and Freddie Mac can purchase. The proposal could take effect Jan. 1. The loan limits are set at $417,000 for the majority of the country but can rise to $625,500 in some high-cost areas.
NAR, along with the Mortgage Bankers Association, the National Association of Home Builders, and others, urged the FHFA in a recent letter to regulators to delay its proposal to reduce the loan limits.
NAR has argued that the reduction in the loan limits could hamper mortgage activity. “Please do not further complicate this time by changing the mortgage loan limits at this time,” the letter states. It also questions whether the FHFA has the legal authority to do so.
FHFA had originally stated the proposal could take effect Jan. 1, but The Wall Street Journal reports that the FHFA may be pushing that date back to the spring of 2014.
Source: “Real Estate Industry Calls for Delay on Loan-Limit Decline,” The Wall Street Journal (Oct. 9, 2013); “Realtors to Regulator: Don’t Lower the Loan Limits,” The Wall Street Journal (Sept. 18, 2013)
Updated: November 23, 2020