Conforming Loan Limits Are Too High, ABA Says
The
conforming loan limits for mortgages that Fannie Mae and Freddie Mac will
purchase are too high, ABA said in a comment letter yesterday. Given
post-crisis house price declines, the average mortgage loan amounted to
$294,000 in March 2014 -- well below the GSEs’ $417,000 and $625,500 in
high-cost areas.
“As Congress works to develop a consensus on broad reforms, ABA has advocated
lowering the conforming loan limits,” the association said. “Such high limits
have made it possible for the GSEs to hold too large a share of the housing
finance market.” ABA acknowledged that statute prevents the conforming loan
limits from being lowered.
--ABA Daily Newbytes
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