ACB Drops Loan-Limit Objection

America's Community Bankers has dropped it long-standing opposition to a key provision in a GSE regulatory reform bill that raises Fannie Mae's and Freddie Mae's loan limit in high-cost areas."We are not endorsing it, we are not opposing it," ACB executive vice president Robert Davis told MortgageWire. ACB adopted this neutral stance over the winter, and it stands in sharp contrast to its previous efforts to protect the jumbo mortgage market from encroachment from the two government-sponsored enterprises. Mr. Davis would not explain the reasoning behind the change in policy. The House GSE bill (H.R. 1427) allows Fannie and Freddie to purchase loans in high-cost areas where the median sales price exceeds the $417,00 conforming-loan limit -- up to 150% of the conforming-loan limit or the median cost in that area, whichever is lower.