Housing Secretary Shaun Donovan is "open to suggestions" on how his department can establish higher FHA loan limits for high-cost submarkets.

Congress gave HUD discretionary authority under the American Recovery & Reinvestment Act to establish separate loan limits for submarkets in places where prices are "significantly higher" than the median for the county or MSA within which they are located. But in response to a question after his talk at the National Association of Home Builders' (NAHB) spring board meeting in Washington, Donovan said setting a ceiling for more than 3,300 separate jurisdictions is "already complex enough" without introducing submarkets into the equation.

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