Despite a slight decline in housing prices, the regulatory office that oversees Fannie Mae and Freddie Mac’s financial health said today it will allow the conforming loan limit to remain at $417,000 in 2007.

Office of Federal Housing Oversight (OFHEO) director James Lockhart announced earlier this month that the office would defer any reduction in the conforming loan limit for one year to “ensure an orderly and transparent process for any downward adjustment.”

The conforming loan limit determines the maximum size of loans eligible for purchase by government sponsored mortgage repurchasers Fannie and Freddie. The limit is tied to the October-to-October change in average house price in the monthly interest-rate survey conduced by the Federal Housing Finance Board.

The FHFB reported a .16 percent decline in average house price to $306,258 in October 2006 — the first decline since 1992-93.

Lockhart said OFHEO is giving plenty of advance notice of its intentions regarding the conforming loan limit in order to avoid disrupting the end-of-the-year pipeline of mortgages or the market for mortgage-backed securities.

In keeping with that intent, OFHEO says it will issue additional guidance for the 2008 limits early next year.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for 50% off.SUBSCRIBE NOW×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription