NAR challenges regulator's authority to lower Fannie, Freddie loan limits

Reducing Fannie Mae and Freddie Mac’s loan limits would fly in the face of congressional policies, the National Association of Realtors maintains in a letter to the mortgage giants’ federal regulator, which is reportedly planning to reduce the conforming loan limit on Jan. 1.

The conforming loan limit is $417,000 in most parts of the country, although Fannie and Freddie can back loans of up to $625,000 in higher-priced markets, and up to $721,050 in Hawaii.

Regulators backed down from a 2007 proposal to reduce the conforming loan limit to reflect home price declines after NAR and other groups objected. Source: blogs.wsj.com