The proposal to decrease conforming mortgage loan limits from the current level of $417,000 has been squelched by the Office of Federal Housing Enterprise Oversight. Any amount over that limit is considered a “jumbo” loan, since it is not salable to the major secondary buyers of mortgages thus making them more expensive for borrowers.
Leading real estate organizations applaud the decision to scuttle the proposal. “The decision to reverse the proposal to establish new guidelines that could have resulted in lower conforming loan limits is welcome news for the housing sector,” said Jerry Howard, executive VP of the National Association of Home Builders.
Bridges to Hope Foundation Newsletter and Blog
