The Federal Housing Finance Agency (FHFA) announced yesterday that Fannie Mae & Freddie Mac Loan Limits Will Remain The Same for 2014. There had been reports earlier in the year FHFA was going to reduce the maximum conforming loan limits for Fannie Mae and Freddie Mac. FHFA received a lot of critizium from the Lending Industry and Congress once their intentions to reduce the conforming loan limit from $417,000 to $400,000 were made known. So it was good news yesterday when FHFA reported they would leave the conforming loan limit at the same amount.
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. In 2008 The Housing & Economic Recovery Act (HERA) gave Fannie Mae and Freddie Mac the authority to set conforming loan limits, but required Fannie Mae and Freddie Mac to make annual adjustments to reflect annual changes in the national average of home prices.
Lowering the Conforming Loan Limit at this time would have been a step backwards in achieving a recovery, and present barriers for many families. Lowering the limit would restrict the ability to obtain financing on higher price home which in turn would limit the sales of these homes. The hope is for the Housing Market to rebound nationwide as it already has started to do in many parts of the Country.
Below is the first page of the news release by FHFA yesterday.
The FHFA full News Release was three pages long. This is the LINK to the full News Release from FHFA announcing Fannie Mae & Freddie Mac Loan Limits Will Remain The Same for 2014. The full News Release also includes how FHFA arrives at the maximum conforming loan limits.
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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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