HousingWire – Christina Mlynski
Policymakers are contemplating a reduction in the maximum size of home loans that Fannie Mae and Freddie Mac are allowed to acquire, hoping this change will reduce the government’s dominant footprint in the mortgage market. However, many industry experts are concerned such a move to adjust conforming loan limits will limit the pool of potential homebuyers, derailing the current housing recovery. Rumors really took off when the Wall Street Journal noted that plans are underway to adjust the limits. The National Association of Realtors (NAR) said it’s prepared to work with Congress on mortgage finance reforms that maintain consumer access to affordable mortgage products for qualified borrowers. But it’s too soon to change the conforming loan limits, the association’s leader said.