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Friday, August 10, 2007

OFHEO: No Change to GSE Portfolio Caps

by Calculated Risk on 8/10/2007 06:44:00 PM

Note: there is no mention in the OFHEO statement about changing the conforming limit.


The portfolio caps were put in place last year because of their serious safety and soundness issues in response to Fannie Mae’s request to increase the portfolio caps, we issued a letter today to Fannie Mae. We also issued a response to Senator Schumer’s recent letter on this topic, which is attached. The letters indicate that we will keep under active consideration requests for an increase in the portfolio caps, but we are not authorizing any significant changes at this time.
OFEHO Letter to Senator SchumerClick on graph for larger image.

This is an excerpt from the OFHEO letter to Senator Schumer (link above) describing OFHEO's views of the subprime, Alt-A and Jumbo prime segments.