Sep 18, 2013
NAR to FHFA: You don’t have what it takes to change loan limits
18 Sep 2013
Posted by Andrew Kantor
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.
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….