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Proposed Guidance on Conforming Loan Limit Calculations

Notice Details
Type
Public Input Notice
Number
2007-N-15
Group
Fannie Mae
Freddie Mac
Federal Register Publish Date
06/20/2007
Effective Date
06/20/2007

Proposed Guidance on Conforming Loan Limit Calculations

Summary

SUMMARY: ​The Office of Federal Housing Enterprise Oversight is seeking public comment on a proposed Guidance on Conforming Loan Limit Calculations. These calculations establish the maximum size limit for loans that Fannie Mae and Freddie Mac may purchase, as provided in their charters. The conforming loan limit is adjusted annually through a calculation of year over year changes to the existing level of home prices based on data from the Federal Housing Finance Board. Because of the importance of the conforming loan limit, OFHEO has sought to craft procedures that avoid problems in the setting of the limit, that provide an understandable framework for setting the limit and that do not represent significant operational challenges to mortgage and financial markets.

The guidance elaborates on and revises an existing guidance—Supervisory Guidance Conforming Loan Limit Calculations, SG-04-01 (February 20, 2004) that delineated OFHEO role in calculating and announcing the conforming loan limit. In 2006, after a decline in housing price numbers, OFHEO announced that, while the conforming loan level had decreased, the resulting decline in the limit would be delayed a year and that OFHEO would revise the existing guidance and address how the decline would be implemented.

OFHEO is seeking comment on all aspects of the guidance. Significant matters include whether and how the limit should decline, rounding of dollar amounts, deferral of loan limit declines for the later of one year or until they reach at least a cumulative one percent (1%) level, “grandfathering” of qualified conforming loans and a number of procedural matters set forth in the guidance.

Because of the importance of Fannie Mae and Freddie Mac and the conforming loan limit to the mortgage markets and the interest of other financial institutions, mortgage bankers, builders, realtors and others, OFHEO has determined to seek public comment on the guidance.

Comments are due by July 19 and should be addressed to Alfred Pollard, General Counsel, OFHEO, at either 1700 G Street N.W., 4th ​Floor, Washington, D.C. 20552 or alfred.pollard@fhfa.gov.​

Link to Guidance and Supplemental Materials​

Public Comments people-icon

Below are a compilation of public comments made on this notice.

26 items
Date Sort ascending First Name Last Name Organization Comment
Ann M. Grochala Independent Community Bankers of America View CommentView Comment Email: N/A
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Colleen Badagliacco California Association of Realtors View CommentView Comment Email: N/A
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Victor J. Bacigalupi The PMI Group, Inc. View CommentView Comment Email: N/A
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Anthony F. Marra Fannie Mae View CommentView Comment Email: N/A
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Samuel H. Wright Realogy View CommentView Comment Email: N/A
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Robert E. Bostrom Freddie Mac View CommentView Comment Email: N/A
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MBA-FHFB View CommentView Comment Email: N/A
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Bill Himpler American Financial Services Association Anne C. Canfield, Consumer Mortgage Coalition; John Dalton, Housing Po…View Comment
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MBA 001908.20070620 CCL NP Guidance.pdfView Comment Email: N/A
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Jonathan L. Kempner Mortgage Bankers Association View CommentView Comment Email: N/A
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Suzanne C. Hutchinson Mortgage Insurance Companies of America View CommentView Comment Email: N/A
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David A. Crowe Naitonal Association of Home Builders View CommentView Comment Email: N/A
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Joseph Pigg American Bankers Association View CommentView Comment Email: N/A
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Pat V. Combs National Associations of Realtors View CommentView Comment Email: N/A
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Janet L. Frank America's Community Bankers View CommentView Comment Email: N/A
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Gary J. Oakland BECU Joe Brancucci, BECU/Prime Alliance Solutions, Inc. View CommentView Comment Email: N/A
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Kevin D. Schneider Genworth Financial View CommentView Comment Email: N/A
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Bob Finn UNION TRUST MORTGAGE SERVICES View CommentView Comment Email: N/A
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Laura Arling N/A View CommentView Comment Email: N/A
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Frances A. Bedekovic American Home Bank, N.A. View CommentView Comment Email: N/A
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Ilya Berdichevsky N/A View CommentView Comment Email: N/A
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Tom Kelemen N/A View CommentView Comment Email: N/A
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Mark Nelson N/A View CommentView Comment Email: N/A
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Linda O'Malley HomePointe Mortgage View CommentView Comment Email: N/A
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J. C. Russell All American Mortgage Co. View CommentView Comment Email: N/A
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