The FHFA requested comment on a plan to gradually reduce the maximum size of loans that Fannie Mae and Freddie Mac may purchase. The plan would lower the loan limit by approximately 4% from $417,000 to $400,000 nationwide and from $625,500 to $600,000 in high cost areas.
Among other things, the agency would like comments on whether six months’ notice is sufficient, whether it is preferable for FHFA to announce a multi-year schedule of decreases, and to what date any future loan purchase limit reductions should be tied.
The FHFA said the changes would not affect loans originated before Oct. 1, 2014.
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