FHFA Requests Public Input on Proposed Gradual Decrease in Fannie Mae and Freddie Mac Loan Purchase Limits

FHFA Press Release - Proposed Gradual Decrease of Future Fannie and Freddie Loan Purchase LimitsThe Federal Housing Finance Agency (FHFA) announced this week that they are requesting public input on a proposed plan to gradually decrease “the maximum size of loans that Fannie Mae and Freddie Mac can purchase” in the future. Reducing Fannie Mae and Freddie Mac’s loan purchase limits is intended to aid in the reduction of the “government’s footprint in the mortgage market,” thus encouraging the investment of more private capital and limiting “taxpayer exposure to losses.” 

The maximum loan purchase limit for one-unit properties would decline from the current $417,000 to $400,000. In those areas where the loan limit ceiling reaches $625,500, the maximum loan purchase limit would be reduced to $600,000. 

The FHFA will take feedback until March 20, 2014. Submissions can be made via email at loanlimitinput@FHFA.gov. To learn more, visit http://1.usa.gov/JJgclU.

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