The Petalumahomes.com Realty WebLog

“Under no circumstance, however, would the maximum loan level for 2008 drop below the 2006 and 2007 limit of $417,000,” Lockhart said.

Lockhart also announced that OFHEO has transmitted to the Federal Register a revised Examination Guidance for procedures relating to the calculation of the conforming loan limit and implementation of increases or decreases in the limit. A proposed guidance was subject to public comment earlier this year and OFHEO has made changes to the proposed guidance in several areas. OFHEO is seeking additional comment on the revised guidance within 30 days of its publication in the Federal Register.

Key provisions of the revised Examination Guidance, Conforming Loan Limit Calculations, proposed for public comment: any decreases in the limit would be deferred one year; decreases would have to total cumulatively more than 3 percent before a decrease would be implemented, a change from the proposed 1 percent de minimis amount; and if a loan is conforming at the time of origination, it remains conforming regardless of declines in the conforming loan limit, providing greater certainty for markets and asset securitization.The Guidance, as transmitted to the Federal Register for publication, can be found on OFHEO’s web site at www.ofheo.gov/media/guidance/CLL101607FR.pdf.