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FHFA Seeks Input on Loan Limit Methodology
Wednesday, May 27, 2015 6:30 AM

The Federal Housing Finance Agency (FHFA) is seeking input on a method for assessing the national average single-family house price, which will be used to set the conforming loan limits for Fannie Mae and Freddie Mac.

The FHFA publishes an expanded-data House Price Index (HPI) on a quarterly basis, which is calculated using sales price information from Fannie and Freddie, the Federal Housing Administration, and county recorder offices. The expanded data HPI has been deemed the most attractive methodology by the FHFA for adjusting the conforming loan limits.

FHFA is seeking input on whether to use this expanded-data HPI as the basis for adjusting the limits, particularly on the merits and weaknesses of the index.

The Housing and Economic Recovery Act of 2008 requires the FHFA to establish and maintain some kind of HPI for use in adjusting the conforming loan limits.