FHFA conforming loan limits increase to $766,550

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1. FHFA conforming loan limits increase to $766,550

The Federal Housing Finance Agency (FHFA) has raised the 2024 baseline conforming loan limit for mortgages backed by Fannie Mae and Freddie Mac to $766,550, a 5.5% increase from 2023's limit of $726,200.

This adjustment reflects the average home price increase of 5.56% between the third quarters of 2022 and 2023. The conforming loan limit growth is slower than the previous year's 12.21% rise.

In regions where 115% of the local median home value exceeds the baseline conforming loan limit value, the Housing and Economic Recovery Act (HERA) establishes the ceiling at 150% of the baseline limit. Consequently, the new ceiling loan limit for one-unit properties will be $1,149,825. LINK

2. FHA loan limit increases to $498,257

The Federal Housing Administration (FHA) announced that it is raising the FHA loan limits for 2024.

The "floor" limit will be $498,257 (65 percent of the national conforming limit), and the "ceiling" limit will be $1,149,825, marking increases of $26,227 and $60,525, respectively, compared to 2023.

FHA also announced an increase in the national lending limit for government-backed reverse mortgages, known as the Home Equity Conversion Mortgage (HECM) to $1,149,825 in 2024. LINK

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3. Catch up quick

🏡 They want to split up. The housing market won’t let them. (WSJ)

📉 Moody’s: Nonbanks’ profitability to decline in the coming quarters. (Yahoo!)

⬇️ Mortgage rates glide gently to new 2-month lows. (MND)

⚖️ Loandepot faces class action lawsuit over pay-to-pay charges. (NMP)

4. CFPB fines BoFA $12 million for mortgage violations

Bank of America will pay a $12 million fine to settle charges that it submitted false mortgage data to the federal government, the Consumer Financial Protection Bureau (CFPB) announced Tuesday.

The second-largest U.S. bank did not admit or deny wrongdoing in the case, which alleges that hundreds of loan officers, over at least a three-month period between 2016 and 2020, failed to ask 100 percent of applicants legally-required questions about their race, ethnicity, and sex, then reported that the applicants chose not to give that information.

5. Charted: Fannie Mae's home price forecast

While Fannie Mae expects the U.S. economy is likely to slip into a mild recession next year, they don't think national home prices will fall in 2024.

Fannie Mae’s forecast model expects U.S. home prices to finish 2023 up +6.7% followed by a +2.8% gain in 2024. Then in 2025, Fannie Mae expects a slight -0.4% dip.

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