Fannie Mae/Freddie Mac/FHA/VA Maximum Mortgage Amount

Housing Finance

Resolves that the National Association of Home Builders (NAHB) supports the statutory formulas mandated in the Housing and Economic Recovery Act of 2008 (HERA) for calculating the annual maximum mortgage amounts for single family loans eligible for purchase by Fannie Mae and Freddie Mac and Federal Housing Administration (FHA) insurance, and linking the Department of Veterans Affairs (VA) maximum guaranty amount to the Freddie Mac loan limit;

Resolves that NAHB opposes any legislative or regulatory efforts to reduce the base loan amount and high-cost area maximum loan limits for Fannie Mae, Freddie Mac, FHA, and VA;

Resolves that NAHB believes only Congress can make changes to the loan limit formula and any such changes should consider the impact on all components of the housing finance system and/or be done through comprehensive housing finance system reform; Resolves that NAHB urges Congress to reinstate discretionary authority to the Director of the Federal Housing Finance Agency (FHFA) and the Secretary of the U.S. Department of Housing and Urban Development (HUD) to apply higher loan limits to “sub areas” (i.e. areas smaller than a county) as deemed necessary by housing and/or economic conditions; and

Resolves that NAHB urge FHA to revise its process for considering requests for adjustments to area loan limits to make the opportunity available for all areas of the country and to provide a reasonable time period for submission of appeals.

Resolution originally adopted: 2015.6, Resolution No. 6

Committee with primary jurisdiction:

  • Housing Finance Committee
Full Resolution The full text of this resolution is available for download