The conforming loan limit for one-unit dwellings in 2005 will be $359,650.Set for the first time by the Office of Federal Housing Oversight, the safety-and-soundness regulator of Fannie Mae and Freddie Mac, the new ceiling on mortgages that can be purchased or securitized by the government-sponsored enterprises takes into account the fact that the two secondary-market giants failed to make a $2,300 downward adjustment in average housing prices when calculating the 2004 ceiling. Had OFHEO not incorporated that adjustment in the '05 maximum, the limit would have been $362,000. Currently, the ceiling is $333,700. The limit is based on housing prices from one October to the next as determined by the Federal Housing Finance Board. The average for both new and existing homes in October was $264,540, up 8.53% from $243,756. But because of last year's procedural error, the increase in the limit for '05 will be only 7.8%. Nevertheless, Freddie Mac said some 340,000 borrowers will benefit next year from the somewhat lower rates charged by lenders on loans at or below the ceiling. Because of the higher conforming loan limit, the ceilings on federally backed mortgages will also increase next year, but it is unclear whether they will be based on the OFHEO-adjusted figure.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago