House and Senate conferees have agreed to restore the $729,750 maximum loan limit for Federal Housing Administration (FHA)-backed mortgages for two years – but left the GSE cap unchanged.
The decision to continue government support for the jumbo mortgage market will be a boon for FHA-approved originators at the expense of portfolio lenders, and private Jumbo conduits itching to enter the market.
The conferees working on the Transportation and Housing appropriations bill did not raise the maximum loan limit for Fannie Mae/Freddie Mac loans, which means it will remain at $625,500.
On September 30, the GSE loan limit was $725,750.
The conference report on a package of appropriations bills was released late Monday evening.
The conferees also agreed to restore the FHA loan limit in hundreds of counties by raising the local benchmark to 125% of the median house price from 115%. The benchmark dropped down to 115% at the end of September.
Congress is expected to pass the Transportation and Housing appropriations bill by Nov. 18.