LOS ANGELES, Nov. 25, 2015 /PRNewswire-USNewswire/ --The
CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today
issued the following statement in response to the Federal Housing
Finance Agency's (FHFA) announcement to keep the 2016 maximum
conforming loan limits for mortgages acquired by Fannie Mae and
Freddie Mac at $417,000 on one-unit
properties and a cap of $625,500 in
high-cost areas. Loan limits were increased in Monterey, Napa, San
Diego, and Sonoma
counties:
"C.A.R. is disappointed that the FHFA didn't raise the Fannie
Mae and Freddie Mac conforming loan limits for next year," said
C.A.R. President Ziggy
Zicarelli. "Home prices in California have risen sharply over the past
four years, yet conforming loan limits haven't changed during that
time. Not increasing the loan limits will hurt California's housing market, further
exacerbating housing affordability and preventing tens of thousands
of California homebuyers from a
chance at homeownership."
C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR) both have
long advocated for making higher conforming loan limits
permanent. As a result of C.A.R.'s and NAR's efforts, cities
with high median home prices have benefited from a loan limit above
the national conforming loan limit.
The conforming loan limit determines the maximum size of a
mortgage that government-sponsored enterprises (GSEs) Fannie Mae
and Freddie Mac can buy or "guarantee." Non-conforming or "jumbo
loans" typically have tighter underwriting standards and carry
higher mortgage interest rates than conforming loans, increasing
monthly payments and hampering the ability of families in
California to purchase homes by
making them less affordable.
Leading the way...® in California real estate for more than 110
years, the CALIFORNIA ASSOCIATION
OF REALTORS® (www.car.org) is one of the largest state trade
organizations in the United
States, with more than 175,000 members dedicated to the
advancement of professionalism in real estate. C.A.R. is
headquartered in Los Angeles.
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SOURCE CALIFORNIA ASSOCIATION
OF REALTORS