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Which federal agency is responsible for setting the annual conforming loan limits for conventional mortgages?

General Mortgage Knowledge · 20% of the SAFE exameasy

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Correct answer: The Federal Housing Finance Agency (FHFA)

The Federal Housing Finance Agency (FHFA) sets the conforming loan limits each year, which determine the maximum loan amount that Fannie Mae and Freddie Mac can purchase. These limits are adjusted annually based on changes in average home prices. The Federal Reserve sets monetary policy but does not set conforming loan limits. The CFPB regulates consumer financial products and services. HUD oversees FHA programs and fair housing, not conforming loan limits.

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