On July 27, 2015, NAR President Chris Polychron submitted comments regarding changes to the national loan limit price index in response to a Federal Housing Finance Agency (FHFA) request. The national limit determines the individual loan limits available under the GSEs and FHA and VA loan programs.
NAR recommends a multifaceted methodology that accurately reflects price growth in markets while also ensuring that accurate limits are maintained. The 2016 limits are expected to be published in October.
In the letter Polychron wrote that federal support for housing finance is a critical driver of liquidity and affordability in the housing market. He said NAR believes that a single price index does not account for the broad nature of the housing market through the housing cycle and could limit access to credit, counter to a principal duty of the FHFA Director. Rather, NAR believes a price index or methodology that recognizes the multifaceted market dynamics is a better choice for setting the conventional loan limits.