California REALTORS® Congratulates FHFA on Raising Fannie Mae and Freddie Mac Compliant Loan Limits

LOS ANGELES, November 30, 2021 / PRNewswire / – The CALIFORNIA ASSOCIATION OF REAL ESTATE AGENTS® (AUTO) today issued the following statement in response to the Federal Housing Finance Agency’s (FHFA) announcement to increase 2022 compliant loan limits for mortgages acquired by Fannie Mae and Freddie Mac at $ 647,200 on single-family homes and a ceiling of $ 970,800 in high cost areas. Previous loan limits were $ 548,250 and $ 822,375, respectively.

“With house prices in California rising so significantly during the pandemic, the CAR congratulates the FHFA for recognizing record increases in house prices and for raising the maximum lending limits in accordance with the markets to high cost to $ 970,800“said the president of CAR 2022 Otto Catrina. “Compliant Loans provide secure and affordable mortgages to California home buyers across the state. If loan limits were not allowed to increase each year to keep up with home prices, first-time and low-income homebuyers across the state would not have access to affordable mortgage capital, which reduces homeownership opportunities for those who need it most. “

CAR and the NATIONAL ASSOCIATION OF REAL ESTATE AGENTS® (NAR) have both long advocated that loan limits reflect the cost of housing in an area. Thanks to the efforts of CAR and NAR, areas with high median house prices have benefited from a loan limit above the national compliant loan limit.

The Compliant Loan Limit determines the maximum size of a mortgage that Government Sponsored Businesses (GSEs) Fannie Mae and Freddie Mac can purchase or “guarantee”. Non-conforming or “jumbo” loans generally have stricter underwriting standards and sometimes carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering families’ ability to pay. California buy houses by making them less affordable.

Since these mortgages are guaranteed by the government, California taxpayers and households alike should have the same equal access to safe and affordable capital that Fannie Mae, Freddie Mac, and FHA loans offer like any other state.

Open the way… ® in California real estate for over 110 years, the CALIFORNIA ASSOCIATION OF REAL ESTATE AGENTS® ( is one of the largest state trading organizations in United States, with more than 200,000 members dedicated to advancing professionalism in real estate. CAR is headquartered in Los Angeles.


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