Joint Letter Asking Congress to Encourage OFHEO to Withdraw Proposed Guidance Allowing Them to Decrease Conforming Loan Limit
July 16, 2007
The Mortgage Bankers Association (MBA), along with the National Association of Home Builders (NAHB) and the National Association of Realtors (NAR)have sent the attached joint letters to the leadership of the House Financial Services Committee and the Senate Banking Committee asking that they encourage the Office of Federal Housing Enterprise Oversight (OFHEO), the regulator of Fannie Mae and Freddie Mac, to withdraw proposed guidance that would allow the regulator to decrease the conforming loan limit.
The conforming loan limit, which is set according to a statutory formula, has never been decreased by OFHEO. The limit is used to determine which loans are eligible for purchase and securitization by the GSEs. In addition, the upper limits for the FHA and VA government loan programs are tied to the conforming loan limit.