home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

2008 Conforming Limit

OFHEO will not cut limit, proposes revised guidance

October 16, 2007


Despite a potential decline in home values, the conforming limit will not be reduced next year.

The Office of Federal Housing Enterprise Oversight announced today that even if the house price index declines this year, the conforming limit will remain at $417,000. The index is calculated every October.

The conforming limit, which represents the maximum mortgage amount that can be purchased by government sponsored housing enterprises Fannie Mae or Freddie Mac, has been subject to adjustment since 1981. In 1970, the limit was just $33,000.

In 2006, the index declined 0.16 percent -- though there was no corresponding reduction to the 2007 conforming limit. But if the index increases this year, an increase to the limit would first be offset by 0.16 percent.

Public guidance proposed by OFHEO calls for any decreases in the limit to be deferred by at least one year, the agency said. In addition, a minimum of a 3 percent decline in the index would be required before a decrease to the conforming limit would be made.

"Under no circumstance, however, would the maximum loan level for 2008 drop below the 2006 and 2007 limit of $417,000," today's release stated.

Other provisions to proposed revised guidance include the permanent status as a "conforming" loan for any loans that were within the conforming limit at the time of origination, which will ensure secondary market stability, and a rounding off to the nearest $100.

Public comment is sought on the revised proposal.

A group of mortgage lenders that claims to be responsible for the majority of U.S. home mortgages recently urged members of Congress not to raise the conforming limit.

In separate letters to the U.S. Senate and House of Representatives, the Consumer Mortgage Coalition -- which includes lenders, servicers and service providers -- said the mortgage industry is already meeting the needs of jumbo borrowers. They said only borrowers earning at least $130,000 would even qualify for a $625,000 loan -- the amount proposed in reform legislation by the House, and "clearly not the low- and moderate-income customers that the proposal purportedly aims to help."

Under the Bush administration, OFHEO is holding off on raising portfolio limits for Fannie and Freddie. The agency recently noted it wouldn't be prudent to significantly boost the portfolio limit now because of ongoing organizational concerns over timely filings with the Securities and Exchange Commission.

Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: [email protected]

Real Estate News | Real Estate Statistics
Residential real estate news and coverage of how residential real estate impacts the mortgage industry and residential mortgage-backed securities.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders