FHFA Seeks Lower Freddie, Fannie Loan Limits

Washington, DC, Dec. 17, 2013 -- Federal regulators have asked the public for comments on a proposal that would cut the size of mortgages that can be purchased by Fannie Mae and Freddie Mac.

The Federal Housing Finance Agency’s proposal would decrease the conforming-loan limit for single-family homes by 4%, to a new ceiling of about $400,000 in most of the U.S., while higher-cost areas would have a new limit of $600,000.

The changes would not take effect before next October. Comments are due by March 20.