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Saturday, September 22, 2007

Fannie, Freddie Portfolio Caps Could be Lifted Next Year

by Calculated Risk on 9/22/2007 02:41:00 PM

The WSJ reports: Limits on Fannie, Freddie Could Be Lifted

The top regulator for Fannie Mae and Freddie Mac said limits on both companies' investment portfolios could be entirely lifted in February if they begin filing timely and audited financial statements.
The Office of Federal Housing Enterprise Oversight imposed strict limits on the portfolio size at Fannie Mae and Freddie Mac last year after accounting scandals at both companies. ... Neither company has filed timely audited financial statements in several years, though both plan to do so by early 2008.

Ofheo Director James Lockhart said in an interview that much could change between now and February, but he indicated for the first time that the caps could be eased. "There's a reasonable chance that the caps will be lifted or changed significantly" by that time, Mr. Lockhart said.
This is a discussion of removing the portfolio cap limit, not the conforming limit for the size of a loan.