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NotCranky.
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January 9, 2008 at 11:17 AM #11444January 9, 2008 at 11:32 AM #132741
(former)FormerSanDiegan
ParticipantFannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.
The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.
January 9, 2008 at 11:32 AM #132927(former)FormerSanDiegan
ParticipantFannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.
The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.
January 9, 2008 at 11:32 AM #132931(former)FormerSanDiegan
ParticipantFannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.
The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.
January 9, 2008 at 11:32 AM #132993(former)FormerSanDiegan
ParticipantFannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.
The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.
January 9, 2008 at 11:32 AM #133030(former)FormerSanDiegan
ParticipantFannie Mae is supposed to set the maximum conforming loan amount based on October-to-October changes in the mean home price. SO, the loan limits have historically tracked the housing market. The loan limits are a lagging indicator.
The interesting thing currently is that they are being allowed to keep them at the same limit, rather than being forced to lower the limit based on market conditions.
January 9, 2008 at 11:38 AM #132751(former)FormerSanDiegan
ParticipantFound an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdfI guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.
It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.
January 9, 2008 at 11:38 AM #132937(former)FormerSanDiegan
ParticipantFound an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdfI guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.
It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.
January 9, 2008 at 11:38 AM #132941(former)FormerSanDiegan
ParticipantFound an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdfI guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.
It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.
January 9, 2008 at 11:38 AM #133004(former)FormerSanDiegan
ParticipantFound an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdfI guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.
It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.
January 9, 2008 at 11:38 AM #133040(former)FormerSanDiegan
ParticipantFound an interesting tidbit on the OFHEO site
http://www.ofheo.gov/media/guidance/confloanlimguidance62007.pdfI guess the OFHEO helps set the loan limit. In the past down cycle, they also did not reduce the loan limits properly and waited until the late 90’s to adjust by effectively making a smaller increase to the loan limit than the market would suggest.
It seems that the formulas and methods have been tinkered with over time. I would expect that during this cycle, the methodology will be changed again.
January 9, 2008 at 3:13 PM #133077NotCranky
ParticipantThanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.January 9, 2008 at 3:13 PM #133181NotCranky
ParticipantThanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.January 9, 2008 at 3:13 PM #133144NotCranky
ParticipantThanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009.January 9, 2008 at 3:13 PM #133081NotCranky
ParticipantThanks,
That letter explained the methodologies for setting the limit quite well. It seems like it would be highly unusual for the limits to go up in 2009. -
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