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Conforming Loan Limit Logic 2018

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chynnakeys edited this page Aug 1, 2022 · 7 revisions

There are 4 possible values included in the conforming loan limit flag field. FHFA periodically updates conforming loan limits, so this logic will need to be updated in future years when the conforming loan limits change.

  • C (Conforming)
  • NC (Nonconforming)
  • U (Undetermined)
  • NA (Not Applicable)

Logic to determine which value (these should be completed in the order listed):

The steps below do not require referencing outside data & can be determined using just the information in the LAR record. The dollar values below come from the FHFA conforming loan limit data.

The values in items 2-5 are the base loan limits for 1, 2, 3, and 4 unit properties respectively. The values in items 6-9 are the maximum values in the FHFA data (sort the Excel sheet high to low to find them). These maximums are adjustments to the base limits for certain high-cost geographies, such as Hawaii. These data are updated annually, the below table uses 2018 limits.

A. When no state or county identifiers are present:

  1. If Total Units >= 5, assign a value of NA (applies regardless of geography)
  2. If Lien Status =1, and Total Units = 1, and Loan Amount is <= $453,100.00, assign a value of C
  3. If Lien Status =1, and Total Units = 2, and Loan Amount is <= $580,150.00 = C
  4. If Lien Status =1, and Total Units = 3, and Loan Amount is <= $701,250.00 = C
  5. If Lien Status =1, and Total Units = 4, and Loan Amount is <= $871,450.00 = C
  6. If Lien Status =1, and Total Units = 1, and Loan Amount is > $721,050.00 = NC
  7. If Lien Status =1, and Total Units = 2, and Loan Amount is > $923,050.00 = NC
  8. If Lien Status =1, and Total Units = 3, and Loan Amount is > $1,115,800.00 = NC
  9. If Lien Status =1, and Total Units = 4, and Loan Amount is > $1,386,650.00 = NC
  10. If Lien Status =2, and Total Units = 1, and Loan Amount is <= $226,550.00 = C
  11. If Lien Status =2, and Total Units = 2, and Loan Amount is <= $290,075.00 = C
  12. If Lien Status =2, and Total Units = 3, and Loan Amount is <= $350,625.00 = C
  13. If Lien Status =2, and Total Units = 4, and Loan Amount is <= $435,725.00 = C
  14. If Lien Status =2, and Total Units = 1, and Loan Amount is > $360,575.00 = NC
  15. If Lien Status =2, and Total Units = 2, and Loan Amount is > $461,525.00 = NC
  16. If Lien Status =2, and Total Units = 3, and Loan Amount is > $557,900.00 = NC
  17. If Lien Status =2, and Total Units = 2, and Loan Amount is > $693,325.00 = NC

B. County data is present but not state. The steps below require referencing data in the FHFA's Conforming Loan Limit file AND require that County data is reported in the LAR.

  1. Lien Status = 1, Total Units = 1, Reference the 1 Unit Limit for the specific County reported.
  • If Loan Amount is <= that limit, assign a value of C.
  • If Loan Amount is > that limit, assign a value of NC
  1. Lien Status = 1, Total Units = 2, Reference the 2 Unit Limit for the specific County reported.
  • If Loan Amount is <= that limit, assign a value of C.
  • If Loan Amount is > that limit, assign a value of NC
  1. Lien Status = 1, Total Units = 3, Reference the 3 Unit Limit for the specific County reported.
  • If Loan Amount is <= that limit, assign a value of C.
  • If Loan Amount is > that limit, assign a value of NC
  1. Lien Status = 1, Total Units = 4, Reference the 4 Unit Limit for the specific County reported.
  • If Loan Amount is <= that limit, assign a value of C.
  • If Loan Amount is > that limit, assign a value of NC
  1. Lien Status = 2, Total Units = 1, Reference the 1 Unit Limit for the specific County reported.
  • If Loan Amount is <= HALF of that limit, assign a value of C.
  • If Loan Amount is > HALF of that limit, assign a value of NC
  1. Lien Status = 2, Total Units = 2, Reference the 2 Unit Limit for the specific County reported.
  • If Loan Amount is <= HALF of that limit, assign a value of C.
  • If Loan Amount is > HALF of that limit, assign a value of NC
  1. Lien Status = 2, Total Units = 3, Reference the 3 Unit Limit for the specific County reported.
  • If Loan Amount is <= HALF of that limit, assign a value of C.
  • If Loan Amount is > HALF of that limit, assign a value of NC
  1. Lien Status = 2, Total Units = 4, Reference the 4 Unit Limit for the specific County reported.
  • If Loan Amount is <= HALF of that limit, assign a value of C.
  • If Loan Amount is > HALF of that limit, assign a value of NC

C. State data is present but not county. The steps below require referencing data in the FHFA's Conforming Loan Limit file AND require that State is data is reported in the LAR (so these are the records where county is reported NA, but State is reported).

  1. Lien Status = 1, Total Units = 1, Reference the minimum and maximum conforming limits for the STATE for 1 unit.
  • If Loan Amount is <= lowest possible limit for the state, assign a value of C
  • If Loan Amount is > highest possible limit for the state, assign a value of NC
  • If loan amount > the lowest possible limit but <= highest possible limit, assign a value of U
  1. Lien Status = 1, Total Units = 2, Reference the minimum and maximum conforming limits for the STATE for 2 units.
  • If Loan Amount is <= lowest possible limit for the state, assign a value of C
  • If Loan Amount is > highest possible limit for the state, assign a value of NC
  • If loan amount > the lowest possible limit but <= highest possible limit, assign a value of U
  1. Lien Status = 1, Total Units = 3, Reference the minimum and maximum conforming limits for the STATE for 3 units.
  • If Loan Amount is <= lowest possible limit for the state, assign a value of C
  • If Loan Amount is > highest possible limit for the state, assign a value of NC
  • If loan amount > the lowest possible limit but <= highest possible limit, assign a value of U
  1. Lien Status = 1, Total Units = 4, Reference the minimum and maximum conforming limits for the STATE for 4 units.
  • If Loan Amount is <= lowest possible limit for the state, assign a value of C
  • If Loan Amount is > highest possible limit for the state, assign a value of NC
  • If loan amount > the lowest possible limit but <= highest possible limit, assign a value of U
  1. Lien Status = 2, Total Units = 1, Reference the minimum and maximum conforming limits for the STATE for 1 unit.
  • If Loan Amount is <= HALF of lowest possible limit for the state, assign a value of C
  • If Loan Amount is > HALF of highest possible limit for the state, assign a value of NC
  • If loan amount > HALF the lowest possible limit but <= HALF of highest possible limit, assign a value of U
  1. Lien Status = 2, Total Units = 2, Reference the minimum and maximum conforming limits for the STATE for 2 unit.
  • If Loan Amount is <= HALF of lowest possible limit for the state, assign a value of C
  • If Loan Amount is > HALF of highest possible limit for the state, assign a value of NC
  • If loan amount > HALF the lowest possible limit but <= HALF of highest possible limit, assign a value of U
  1. Lien Status = 2, Total Units = 3, Reference the minimum and maximum conforming limits for the STATE for 3 unit.
  • If Loan Amount is <= HALF of lowest possible limit for the state, assign a value of C
  • If Loan Amount is > HALF of highest possible limit for the state, assign a value of NC
  • If loan amount > HALF the lowest possible limit but <= HALF of highest possible limit, assign a value of U
  1. Lien Status = 2, Total Units = 4, Reference the minimum and maximum conforming limits for the STATE for 4 unit.
  • If Loan Amount is <= HALF of lowest possible limit for the state, assign a value of C
  • If Loan Amount is > HALF of highest possible limit for the state, assign a value of NC
  • If loan amount > HALF the lowest possible limit but <= HALF of highest possible limit, assign a value of U

D. These are the records that have no state and county data (state & county reported NA) & have not been assigned a value in the preceding steps.

  1. If the record has not been assigned a value in steps 1 through 33, assign a value of U.
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