Conforming Loan Limits Raised For FannieAnd Freddie

WASHINGTON - (12/01/04) -- The Office of Federal HousingEnterprise Oversight, said Fannie Mae and Freddie Mac may lifttheir conforming loan limit, the size of the home loans they maybuy from credit unions and banks, by 8.5% next year to $359,650.The current limit is $333,700. The increase in the limit is basedon the index reflecting rising home prices, which have gone up anaverage of 8.5% annualized through October. While the two secondarymortgage market giants usually set the limits on their own, thefederal regulator decided to set the limits this year because ofdoubts on the accuracy of the companies' calculations in settingthe limits in previous years.