The Mortgage Bankers Association said its members support the 40-year loan term as an additional loss-mitigation option, and not the only option.

Trade groups are resigned to whatever model FHFA chooses, but they need data on how it performs compared to FICO to set up their own systems and procedures.

Trade groups representing smaller nonbank seller/servicers say it’s the larger nondepositories, with nearly 70% of the market, that pose the biggest risk to Fannie and Freddie.

Critics argue that the mechanical method for determining the loan limits distorts the market and makes it harder for the GSEs to meet their affordable housing goals.

The unprecedented increase has FHFA leadership thinking about the relationship between the conforming loan limits and home price appreciation.