In a testimony today before the Committee on Banking, Housing and Urban Affairs, National Association of Realtors' Public Policy Chair Vincent Malta argued that the national GSE conforming loan limit should be permanently raised to 625,500 or higher. Malta also suggested raising the limits an additional increase of 125% of the local median home-sales price in high-cost areas. "Fannie Mae and Freddie Mac provide liquidly and stability in the mortgage market and are vital to the housing sector," he said. Malta urged that such a move would increase home sales by nearly 350,000, lower inventories and increase home prices by 2% to 3%. It would also result in as many as 210,000 fewer foreclosures, and more than 500,000 borrowers would be able to refinance into lower interest rate loans, he said.
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