High-cost housing markets would be hurt by lower loan limits proposed in a Senate bill that would replace mortgage giants Fannie Mae and Freddie Mac with a federal mortgage insurer, the California Association of Realtors says.

“While the bill is a starting point, any final legislation must not hinder liquidity for qualified homebuyers, especially in a down market,” said CAR President Don Faught in a statement.

S. 1217, the Housing Finance Reform and Taxpayer Protection Act of 2013, would set the conforming loan limit for single-family homes at $417,000, to be adjusted each year to reflect changes in home prices. Limits in Alaska, Hawaii, Guam and the U.S. Virgin Islands could be set as high as 150 percent of the conforming loan limit ($625,500).

In high-cost areas where the median house price exceeded $362,600, the  conforming loan limit could also be increased to as much as 150 percent of the conforming loan limit ($625,500) during the first year after the bill became law. Limits in high-cost areas outside of Alaska, Hawaii, Guam and the U.S. Virgin Islands would be stepped down over five years, and then be capped at 125 percent of the conforming limit ($521,250).

Source: car.org.

Back to top
Prepare for this fall with top agents & brokers at Connect Now this Tuesday.GET YOUR TICKET×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
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