Mortgage News and Notes

Perhaps the least understood metric of the US mortgage policy is not so much the role of Fannie Mae and Freddie Mac, as most homeowners know about those two mortgage giants. Instead, I think it is the way that these agencies work to implement positive policies that are supportive of homeownership for all of us. The most important of those policies is the definition of what is a “conforming mortgage.” If your mortgage is conforming, then you get all of the benefits of the standardization of underwriting as set by Fannie and Freddie. The regulatory agency that oversees Fannie & Freddie is the Federal Housing Finance Agency (FHFA). That agency has just announced good news for homeowners.

 

The most important part of the definition of a conforming mortgage is the maximum amount of that mortgage. FHFA has increased the maximums of conforming mortgages for 2020. There are two maximums, one national in scope and another for what are known as “High-Cost Areas.” It will surprise no one who reads this newsletter that the Washington DC Metropolitan Area is a “High-Cost Area.” The maximums are as follows:

 

  • All States (other than Alaska and Hawaii) $510,400

  • High-Cost Areas: $765,600

     

    This means that if your mortgage here in the DC region is at $765,600 or under, you are given the rights and benefits of every Fannie and Freddie borrower. That is an enormous benefit. Call Margie anytime to hear about how we can help you with your financing options.

      

    Steven H Hofberg, Operations Manager

Posted by Steven Hofberg on December 18th, 2019 11:27 AM

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