The Mortgage Bankers Association has changed course and is
now backing stand-alone legislation that would allow
Fannie Mae and Freddie Mae to purchase jumbo loans of up to
$625,000 nationwide on a temporary basis.
In a letter to the GSEs\' regulator, the MBA contends
that liquidity problems in the jumbo market have led
to higher interest rates on loans above the conforming
loans limit ($417,000) and fewer financing options
for borrowers. The increase should be in effect for
no less than 12 months, and up to 24 months if market
conditions warrant, the MBA says in a letter to
James Lockhart, director of the Office of Federal
Housing Enterprise Oversight.
The MBA previously opposed a temporary hike in the
conforming lending limit unless it was part of a
comprehensive bill to strengthen the regulation and
supervision of the government-sponsored enterprises.
