Fitch Ratings believes that the FHFA proposal to lower loan purchase limits for Fannie Mae and Freddie Mac will have only a “modest” impact on revitalizing private label mortgage lending.

The ratings agency said in a report today that based on 2012 mortgage lending figures, had the FHFA implemented then the roughly 4% cut its proposes today, it would have shifted just 1% of borrowers to the private jumbo market.

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