Contact your U. S. Representative and U. S. Senators today to let them know that a decrease in the FHA and GSE loan limits will further depress our housing markets.

In November, the Federal Housing Finance Agency and HUD announced GSE and FHA loan limits levels for 2020. While the conforming loan limit will remain at $417,000 for most areas in the country, “high cost” area limits in many counties will decrease on January 1, 2020.

  • 38 counties in California will experience a decrease in their GSE loan limit on January 1, 2020. The average decrease is more than $85,000.
  • 55 counties in California will experience a decrease in their FHA loan limit on January 1, 2020. The average decrease is more than $104,000.
  • Decreases in 2008 limits can be attributed to:
  • Area median home values, which are used to calculate an area’s loan limit, have declined substantially in 2008.
  • The factor used to calculate an area’s loan limit is decreased from 125% to 115% of an area’s median home price (change included in the July 2008 Economic Stimulus Package).
  • The maximum cap is reduced from $729,750 to $625,500 (change included in the July 2008 Economic Stimulus Package).


In order to help homeowners in California avoid foreclosure and access safe and affordable mortgage products, the Federal Housing Administration (FHA) and GSE (Government Sponsored Enterprise) programs must be available here.

Ask your Senators and Representative to include language in the economic stimulus package to maintain the 2008 maximum loan amounts for FHA and GSE mortgage products, without recalculation.

Call their Washington D.C. office directly to personally convey how important it is that the 2008 loan limit levels are maintained, without recalculation, for 2020.

California Senators contact information:

Senator Dianne Feinstein - (202) 224-3841

Senator Barbara Boxer - (202) 224-3553


  • Congress must retain the 2008 loan limit levels for FHA and GSEs, without recalculation.
  • The announced decrease in the GSE and FHA loan limits for 2020 will strip needed mortgage capital from 55 metropolitan statistical areas in California.
  • Decreasing the loan limits will have the practical impact of removing GSE and FHA loans as an option to many homebuyers in California.
  • In 2008, only the GSEs and the FHA have been able to consistently supply affordable capital to California’s and the nation’s housing markets.
    • In February 2008, prior to the new higher loan limits being implemented, 878 homes were purchased using FHA in California.
    • In September 2008, 10,026 homes were purchased using FHA in California.
  • Now that jumbo-loans are requiring 20 to 30 percent down and their interest rates are much higher than eight percent in many cases, a decrease in loan limits will leave no options for homebuyers. This will further depress the housing market in California, resulting in further declines in home prices.

CAMB is Fighting for YOU in Washington, D.C.

CAMB is your voice in Washington to ensure that California is not left out of federal solutions to help Americans avoid foreclosure and have access to safe and affordable mortgage products. CAMB’s GA team is at the forefront of efforts to ensure that Californians are included in legislative solutions to the current mortgage crisis.

CAMB has been a strong proponent for the higher loan limits needed in California and was instrumental in achieving the $729,750 limit we are about to lose.

  • CAMB’s Government Affairs team is working with our lobbyist on-the-ground in Washington, D.C. to ensure leaders in Congress know how critical it is that legislation is passed immediately to preserve the 2008 loan limit levels.
  • In response to this and other issues confronting our industry, CAMB recently joined with the California Association of Realtors (CAR) to issue a letter to Members of Congress asking that the next stimulus package extend the current Federal Housing Administration (FHA) and Government Sponsored Enterprises (GSE) loan limits at 2008 levels.

Please contribute to the CAMB Legislative Fund. CAMB urgently needs your monthly contribution of $10, $20, or $50 now. The 2020 legislative calendar will be full and mortgage brokers will once again be under attack. Support the association working to keep mortgage brokers in business…CAMB.