Pulte won’t cut conforming loan limits for Fannie, Freddie

by Sarah Wheeler

FHFA Director Bill Pulte said Tuesday that he won’t cut the conforming loan limits for loans bought by Fannie Mae and Freddie Mac, ending speculation that the Trump administration would look to substantially shrink the size of the two GSEs through limiting the size of loans they could buy. This is according to reporting by CNBC’s Diana Olick.

“There are no plans to do anything as it relates to the conforming loan limit,” Pulte said, according to the outlet.

The conforming loan limit for 2025 is set at $806,500, an increase of 5.2% or $39,950 from the 2024 limit.

Removing the GSEs from conservatorship is a goal of the Trump administration, but the timing of any exit — or any start of the exit — is unclear. On Feb. 7, Treasury Secretary Scott Bessent said that passing the president’s tax policy was their first job and said that mortgage rates were a key factor for any release.

“The priority for a Fannie and Freddie release — the most important metric I am looking at is any study or hint that mortgage rates would go up. So anything that is done around a safe and sound release is going to hinge on the effect on long term mortgage rates,” Bessent said.

Pulte has also said that any exit from conservatorship would be done in a safe and sound manner. In his confirmation speech, Pulte said, “While their conservatorship should not be indefinite, any exit from conservatorship must be carefully planned to ensure the safety and soundness of the housing market without upward pressure on mortgage rates,” he said.

Some pundits have speculated that drastically reducing the conforming loan limit would be one way to cut the volume of business being done by Fannie and Freddie.

Pulte was confirmed on March 13 and has taken quick action since then. He installed himself as board chair of the GSEs and closed two of FHFA’s departments, resulting in a workforce cut of about 10%. On March 19 Pulte ordered Freddie Mac staff back into the office five days a week and the next day fired the Freddie Mac CEO and other top executives. It would seem Fannie Mae would get the same treatment, but so far the leadership there is intact.