| Title: | Media Alert: Joint Letter Asking Congress to Encourage OFHEO to Withdraw Proposed Guidance Allowing Them to Decrease Conforming Loan Limit |
| Source: | MBA |
| Date: | 7/13/2007 |
Today the Mortgage Bankers Association (MBA), along with the National Association of Home Builders (NAHB) and the National
Association of Realtors (NAR) sent the attached joint letters to the leadership of the House Financial Services Committee
and the Senate Banking Committee asking that they encourage the Office of Federal Housing Enterprise Oversight (OFHEO), the
regulator of Fannie Mae and Freddie Mac, to withdraw proposed guidance that would allow the regulator to decrease the conforming
loan limit. The conforming loan limit, which is set according to a statutory formula, has never been decreased by OFHEO.
The limit is used to determine which loans are eligible for purchase and securitization by the GSEs. In addition, the upper
limits for the FHA and VA government loan programs are tied to the conforming loan limit.
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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mortgagebankers.org.