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July 7, 2011

GWSB Report: FHA Loan Limits Exceed Necessary Level

A study co-authored by Robert Van Order, Oliver T. Carr professor of real estate, and Anthony Yezer, professor of economics, reports that the Federal Housing Administration's (FHA) current loan limits are larger than necessary to serve its target market of first-time and low-to-moderate income borrowers. The study finds that the Obama Administration's proposal to reduce the higher end of FHA's loan limits would have a small impact on its current market share and that larger changes are needed as FHA phases out its recent role as lender of last resort. more

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