FHFA to Lower Loan Limits 25

Here’s a topic that’s completely up for grabs. What I mean is I’m not eve going to try and take one side or the other on this issue because it’s just too big. How can anyone think they’ve got the whole picture, right?

But just in case you feel strongly about this, here goes.

The FHFA is planning on lowering loan limits for Fannie Mae and Freddie Mac. And the housing industry (plus Congress, when they’re working) are pretty upset by this.

Here are the two sides of the coin:

Con: lowering limits will make mortgages more expensive for potential homeowners, preventing the housing recovery from expanding.

Pro: lowering limits will keep the GSEs less involved making room for private capital in the market and reducing risk.

So the two sides might be summarized as easier for people vs. easier for the country; supporting homeowners vs. preventing crisis; or any other way you might want to put it.

How do you see the issues? Is this something you want to see happen or not? Leave a comment below.

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