Skip to main content

  • Comment Detail

  • Date: 12/19/13
    First Name: Michael
    Last Name: Regan
    Organization: N/A
    City: N/A
    State: N/A
    Attachment: N/A
    Number: 2013-N-18

  • Comment

    To whom it may concern I am against the proposed change to lower the conforming loan limit to $400,000.

    While the medium home price in the nation is around $200k, on the coasts, specifically CA and the north east, the medium home price is well above that; in many of those densely populated areas an entry level home costs well over $400k.

    Reducing the limits to this low a level would have a huge negative economic impact on these areas where a majority of the country’s population is.

    There is still not a healthy secondary market for jumbo loans and by lowering the limits you’re going to push people out of the market reducing home prices and creating another recession.

    Due to the lack of competition borrowers will pay higher rates and afford less; again driving home prices down.

    With dropping home prices the number of distressed sales will once again increase and cause further losses for the GSE’s and harm to our economic recovery nationwide.

    The timing is not right to reduce the loan limits; keep them at $417k with a high balance option up to $625,500 in high cost counties (status quo).

    Until there’s a healthy secondary market for jumbo loans and our economy is firmly back on its feet don’t lower the loan limits and hurt our housing and economic recovery.

    Thank you!