WASHINGTON (12/2/13)--As Federal Housing Finance Agency acting director Edward DeMarco hinted in late October (News Now Oct. 28), 2014 maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac will remain at $417,000 for one-unit properties in most areas of the country.
DeMarco said back in October that the FHFA would give at least six months' notice before lowering the statutory maximum, and said that it won't act until at least next spring. He said that any rule change would be "measured" to minimize market shocks.
The maximum conforming loan limits for one-unit properties, for loans purchased in 2014 and generally originated after Oct. 1, 2011 or before July 1, 2007, are $417,000 in most locations, but are as high as $625,500 in certain high-cost areas in the contiguous United States. These numbers reflect the 2013 levels.
The loan limits are established under the terms of the Housing and Economic Recovery Act of 2008 (HERA) and are calculated annually.
HERA requires the loan limits to be set as a function of median home values in local areas: While some counties saw increases in home prices in 2012, no loan limit increases were evident after other HERA terms such as the statutory ceiling and floor were taken into account.