FHFA Seeks Public Input on GSE Loan Purchase Limit, Proposal Wouldnt Take Effect Until October
December 19, 2013
Citing its goal and the White Houses stated preference to reduce the market presence of the government-sponsored enterprises, the Federal Housing Finance Agency this week proposed setting loan-purchase limits for Fannie Mae and Freddie Mac. The FHFA said it could use its authority as conservator to set loan-purchase limits about 4.0 percent below the statutory GSE loan limits it established for 2014. Instead of a national floor of $417,000, the top single-unit mortgage Fannie and Freddie would buy in markets that are not designated high cost would be $400,000. The maximum purchase limit in high-cost markets would be $600,000, rather than $625,500, and all the tweener high-cost limits would similarly be reduced by 4.0 percent. The loan purchase limits would modestly reduce...