OFHEO Issues Final Guidance on Conforming Limits

The Office of Federal Housing Enterprise Oversight has changed its course in terms of the conforming limit amount. OFHEO said that based on comments received in two public comment periods, the regulator is issuing a final guidance on loan limits. The guidance provides the conforming loan limit would not drop from its current $417,000 level in 2009 and subsequent years. But, the OFHEO said that the conforming loan limit will not rise until cumulative increases in house prices go over cumulative decreases since the $417,000 limit was first reached.