Drop in conforming loan limits would raise cost of housing financing, hamper housing recovery

LOS ANGELES, CA – June 24, 2011 – (RealEstateRama) — More than 30,000 California families will face higher down payments, higher mortgage rates, and stricter loan qualification requirements if conforming loan limits on mortgages backed by the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac are reduced beginning October 1, 2011, according to analysis by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).