This delay to an expected loan limit reduction was revealed during a meeting between NAR president Gary Thomas and FHFA officials.
At that meeting, Thomas emphasized that now is not the right time to lower loan limits. FHFA officials told Thomas that any action will be “delayed until the middle of next year,” according to NAR associate policy representative Charles Dawson.
FHFA officials would not confirm the Realtors’ report. FHFA acting director Edward DeMarco is slated to speak at a joint Zillow/Bipartisan Policy Center housing conference Thursday (Oct. 24) afternoon where he will discuss GSE loan limits.
Dawson stressed that the FHFA still believes it has the authority to reduce GSE loan limits due to its conservatorship powers. However, the FHFA has received letters signed by senators and congressmen questioning the FHFA’s authority to act without congressional approval.
It is understood that the FHFA wants to reduce the $625,500 maximum loan limit to $600,000 to attract more private capital into the mortgage market, and reduce Fannie and Freddie’s $417,000 base limit to $400,000.
The FHFA usually announces any changes in the GSE loan limits before the beginning of the year.