Bill Pulte, the newly confirmed director of the Federal Housing Finance Agency (FHFA), which oversees mortgage giants Fannie Mae and Freddie Mac, announced that he will not lower the conforming loan limit. This limit, calculated annually based on current home prices, is currently set at $806,500, marking an increase of $39,950 (or 5.2%) from 2024. Pulte stated there are no plans to alter the conforming loan limit. The FHFA has overseen Fannie Mae and Freddie Mac since their conservatorship in 2008. Questions have arisen regarding Pulte’s intentions, including whether he would lower their conforming loan limits. A recent report from the CATO Institute suggested Congress should limit the FHA’s single-family insurance portfolio to first-time homebuyers and decrease the value of loan limits eligible for FHA single-family mortgage insurance to the first quartile of home prices. — news from CNBC
