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Volume 2014 - Number 7

March 28, 2014

Little Support for Reducing GSEs’ Loan Limits, Housing Market Seen as Too ‘Fragile’

Lowering Fannie Mae and Freddie Mac loan limits is one of the easiest levers the federal government could pull to increase non-agency participation in the mortgage market but most market participants favor keeping them at their current levels. In December, the Federal Housing Finance Agency announced that it was considering reducing the loan “purchase limits” for the government-sponsored enterprises. Under the plan, the GSEs could not purchase loans exceeding ...

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