Federal Housing Finance Agency

The national conforming loan limit for mortgages that finance single-family one-unit properties increased from $33,000 in the early 1970s to $417,000 for 2006-2008, with limits 50 percent higher for four statutorily-designated high cost areas: Alaska,  Hawaii, Guam, and the U.S. Virgin Islands.  Since 2008, various legislative acts increased the loan limits in certain high-cost areas in the United States.  While some of the legislative initiatives established temporary limits for loans originated in select time periods, a permanent formula was established under the Housing and Economic Recovery Act of 2008 (HERA).  The 2021 loan limits have been set under the HERA formula. 

The Federal Home Loan Bank (FHLB) system was created by the Federal Home Loan Bank Act of 1932 as a government sponsored enterprise to support mortgage lending and related community investment. It is composed of 12 FHL Banks, more than 8000 member financial institutions, and the System's fiscal agent, the Office of Finance. Each FHL Bank is a separate, government-chartered, member-owned corporation. The Federal Home Loan Banks (FHLB) members include thrift institutions, commercial banks, credit unions, and insurance companies. A financial institution joins the FHL Bank district that serves the state where the institution's home office or principal place of business is located. A financial institution may become a member by meeting certain statutory requirements.