Senators Urge FHFA Not to Change Loan Limits
13 Senators last week sent a letter to FHFA Acting Director DeMarco urging him not to lower the Freddie Mac and Fannie Mae loan limits. In August FHFA announced the intention to lower the loan limits to encourage private growth in the mortgage market. NAR sent a letter to FHFA urging them not to make such a change - asserting they do not have the authority to do so, and arguing against reducing mortgage liquidity across the nation. The Senators, lead by Senator Menendez (D-NJ) and Isakson (R-GA), urged FHFA to leave any such changes to Congress, and asked FHFA to demonstrate both their authority for doing so, and an impact analysis on housing markets and the economy. The 11 Senators joining the authors were: Begich (D-AK), Blumethal (D-CT), Boxer (D-CA), Chambliss (R-GA), Feinstein (D-CA), Gillibrand (D-NY), Markey (D-MA), Murphy (D-CT), Schumer (D-NY), Shaheen (D-NH), and Warren (D-MA).
Representatives Miller (R-CA) and Maloney (D-NY) are working on a similar letter in the House that will go out later this week.