OFHEO Releases Conforming Loan Limit Guidance For Comment
June 21, 2007
WASHINGTON, DC -- The Office of Federal Housing Enterprise Oversight has placed on its Web site for public comment a guidance on conforming loan limit calculations. These calculations establish the maximum size limit for loans that Fannie Mae and Freddie Mac may purchase, as provided in their charters. The conforming loan limit is adjusted annually through a calculation of year-over-year changes to the existing level of home prices based on data from the Federal Housing Finance Board (FHFB).
In 2006, after a decline in housing price numbers, OFHEO announced that, while the house price level in the FHFB series had decreased, the effect of that decline on the conforming loan limit would be delayed a year and that OFHEO would revise the existing guidance and address how the decline would be implemented. The guidance released today elaborates on and revises the existing guidance: Supervisory Guidance Conforming Loan Limit Calculations, SG-04-01 (February 20, 2004).
Because of the importance of the conforming loan limit to homebuyers, other financial institutions, mortgage bankers, builders, realtors and others, OFHEO is seeking public comment on the guidance. Comments are due by July 19 and should be addressed to Alfred Pollard, General Counsel, OFHEO, at either 1700 G Street N.W., 4th Floor, Washington, D.C. 20552 or firstname.lastname@example.org.