Furman Center Releases New Report on Federal Loan Limit Reductions

Research & Policy | October 11th 2011

Oct. 11, 2011: A new paper by the Furman Center, A Canary in the Mortgage Market? Why the Recent FHA and GSE Loan Limit Reductions Deserve Attention, explores the potential implications of recent reductions in the maximum loan size that can be guaranteed by Fannie Mae and Freddie Mac (Government-Sponsored Enterprises or GSEs), or insured by the Federal Housing Administration (FHA) in many parts of the country. The changes, which went into effect on Oct. 1, 2011, represent the first step in a long-term policy goal to reduce the federal government’s current role in the mortgage system. The reductions will also be a significant test of the private mortgage finance system. View Factsheet.

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