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Increasing Conforming Loan Limits?
By admin | January 25, 2008
Congress was rumored last week to increase conforming loan limits, what is the chance that we will see an increased somewhat?
The president and Secretary Paulson have made it very clear that really want that to happen with various [tag-cat]Government Sponsored Enterprise[/tag-cat] reform in place.
Would that be good for the credit market? Some people think it would be good on the margin. The critical thing about [tag-cat]Fannie Mae[/tag-cat] and [tag-cat]Freddie Mac[/tag-cat] has been that over the last six months, they have kept the conforming loan market going. The mortgagor has grown dramatically, as the rest of the providers have withdrawn.
If you look at their market share now, it is probably approaching 70% of all mortgages made in this country. This is the main reason everyone believes there should be much stronger regulation in the future.
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