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Those two entities can buy only "conforming" loans.
That might seem a preposterous stance, given the government guarantee on conforming loans.
They are only for conforming loans, which reach a maximum of $729,750 in New York.
Such conforming loans carry certain credit, documentation and insurance requirements, among other factors.
Mortgages of up to $417,000 are known as "conforming" loans.
Now, Fannie and Freddie are by far the biggest game in town, so on conforming loans, their rules are gospel.
Similar(22)
But the limit is higher, and can run as high as $729,750, for a so-called conforming jumbo mortgage or "expanded conforming" loan, which is available in 71 high-cost marketplaces around the country.
Has the change in conforming loan limits affected your purchase?
These mortgages exceed the conventional "conforming" loan limit of $729,750 set by Fannie Mae and Freddie Mac, the government-owned companies.
That means that, for example, if you'd pay 5.0 percent for a smaller, conforming loan, a jumbo loan would be 5.60 percent.
On the contrary, Garrett argued, he and other Republicans had wanted to "raise the capital levels, to reduce the retained portfolios, to lower the conforming loan limits".
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