The Securities Industry and Financial Markets Association today said that it supports the Federal Housing Enterprise Oversight move to retain existing conforming loan limits for 2007 even with the expected decrease in house prices
Robbin Conner, vice president and assistant general counsel, commented on the procedures recently announced by the OFHEO for determining GSE 2007 conforming loan limits.
"We applaud OFHEO's decision to issue guidance on computing loan limits and to defer the effect on maximum conforming limits for one year if the October data, which will be released in November, shows a decline in housing prices," Conner said in a release. "Because lenders are making decisions today that may be affected by the limits put in place next January, this guidance minimizes uncertainty in the market. We support OFHEO's efforts to assist the market in making an orderly transition as housing prices change."
