Acting Director of the Federal Housing Finance Agency (FHFA) Edward DeMarco is considering a New Proposal To Lower Conforming Loan Limits For Fannie Mae & Freddie Mac. DeMarco's Proposal is meeting opposition from the Lending Industry and Congress. For once Congress is responding properly and in the best interest of Homeowners in my opinion by opposing this proposed action by the Acting Director of the FHFA. Lowering the Conforming Loan Limits at this time is absolutely the wrong thing to do, and Congress needs to make sure it does not happen.
The Housing Market is still trying to recover from the mess of the last several years. Lowering the Conforming Loan Limits would be a step backwards in achieving a recovery, and present a barrior for many families purchase homes in higher price markets.
The present Conforming Loan Limit is $417,000, and has been the Conforming Loan Limit for single family properties since 2006. Several attempts have been made in recent years to lower this limit, but none have succeeded, and the Conforming Loan Limit has remained the same. The latest attempt by acting Director of the Federal Housing Finance Agency (FHFA) Edward DeMarco, would lower the Conforming Loan Limit to $400,000. This may not seem like much, but in higher priced markets it could impact the purchase of a number of properties.
Even if proof can be shown that because of declining property values, the Conforming Loan Limit which was set at the height of the Housing Market is no longer needed, it would still be a bad idea to do so. The hope is for the Housing Market to rebound nationwide as it already has started to do in many parts of the Country. Lowering the limit would restrict the ability to obtain financing on higher price home which in turn would limit the sales of higher price homes.
Hopefully Congress will be successful in blocking DeMarco from following through on his New Proposal To Lower Conforming Loan Limits For Fannie Mae & Freddie Mac, especially since DeMarco does not really need their approval to lower the Conforming Loan Limit.
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George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com
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