No jumbos for Fannie, Freddie
November 27, 2007 | 10:33
am
Not a shocking piece of news, but a development worth noting: "Mortgage finance companies Fannie Mae and Freddie Mac will not be able to invest in loans valued above $417,000 next year, their regulator said on Tuesday, saying it will hold the current loan limit steady."
More: "The so-called "conforming loan limit" will be held in place despite falling home prices around the nation, said the regulator, the Office of Federal Housing Enterprise Oversight.
Your thoughts? Comments? Insights? Email story tips to lalandblog@yahoo.com.
I know I have been fooled too many times before, but it appears that the insanity at Freddie Mac and Fannie Mae was just temporary.
Posted by: MyLessThanPrimeBeef | November 27, 2007 at 11:04 AM
Is it really a house of cards? Whats next 9.5% loans from BofA "because we can" slogan........
Posted by: Rob | November 27, 2007 at 12:50 PM
This is not a surprise given the turmoil at both. Their balance sheets are in bad shape.
I think Congress could still make the regulator change its mind though.
Posted by: tew | November 27, 2007 at 03:08 PM
Awwwww - where is Countrywide going to find another sucker to unload those loans on?
I just love this part of the article:
"The conforming loan limit is typically pegged to average home prices across the nation but allies of Fannie Mae and Freddie Mac have called for the limit to be eased in the face of the current housing finance crisis."
After suffering a $2B writedown, "allies" are trying to increase the loan limits?! Whoever had the stones to say no to that deal - buy him a round on me. Guess the lobbyists underestimated how big a sack of cash they needed to bring.
Posted by: TakeFive | November 27, 2007 at 04:48 PM
OH BOY!!! What a surprise.....No jumbo loans ..I wonder why????
Go ask Angelo Or shall I say The new blue man
Posted by: upthecrekk | November 27, 2007 at 08:43 PM
Well, since median income family cannot even afford to buy a $417,000 house, why would they need to increase the limit????
the whole idea of the conforming loans is to help get median families into buying a house.
If someone can afford to buy a house for $1,000,000 or more...Let him pay for it using free market loans or cash...
Besides, 90% of the house even in california and specifically southern california and even more specifically SFV, do NOT even worth $417,000. A better figure for an average SFV home is probably $250,000 and that is pushing it...
think about it.
Posted by: Paul U. | November 27, 2007 at 10:10 PM