AFP Leads Conservative Coalition Against High Conforming Loan Limits
Today Americans for Prosperity joined with eleven scholars and conservative organizations and sent an open letter to the U.S. Congress opposing high conforming loan limits. The limits determine the maximum amount of mortgage debt that can be backed by the government.
As the letter explains, lowering conforming loan limits is a vital part of winding down government housing subsidies from Fannie Mae, Freddie Mac, and the FHA and getting the government’s meddling hand out of these markets. The limits fell as scheduled from a high of $729,750 to $625,000 on October 1, but some lawmakers want to reinstate the higher limits and delay the elimination of Fannie, Freddie, and subsidies from the FHA.
With nearly $15 trillion in national debt, we simply can’t afford government subsidies for $700,000 mortgages.
The text of the letter is below.