So remember that Fannie and Freddie were looking at reducing their loan limits (the highest-value mortgages they’re willing to insure)?

Not so fast, says NAR. The Federal Housing Finance Agency which owns oversees Fannie and Freddie doesn’t have the authority to reduce those limits, said NAR president Gary Thomas in a sternly-worded letter to FHFA acting director Ed DeMarco.

You have not yet made public your legal theory for overriding the statutory prohibition against reducing conforming loan limits, but we have serious legal questions about whether you have this authority.

and

If you had the authority to ignore the prohibition against reducing loan limits, what would prevent you from making other fundamental changes? We believe Congress did not intend to allow you to make any fundamental changes to the statutory structure of the organizations….

Click here to read more over at the Wall Street Journal.