real-time news and commentary for investors
Monday, Oct 7
Real estate lobbying groups flex muscle over FHFA loan limits
- Hasn't housing recovered? The National Association of Realtors and National Association of Home Builders send a letter to House representatives asking them to prevent the FHFA from lowering conforming loan limits for Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB).
- "While there has been some return of private mortgage lending, without the benefit of a federal guarantee, it remains limited and available only to the most highly qualified borrowers ... FHFA Acting Director DeMarco appears to be making decisions above and beyond this authority provided by Congress and may significantly damage local housing markets."
- The FHFA wants to cut the limits beginning in 2014 in order to shrink the GSEs presence in the mortgage market and allow room for private capital to enter.