Despite a slight decline in housing prices, the regulatory office that oversees Fannie Mae and Freddie Mac’s financial health said today it will allow the conforming loan limit to remain at $417,000 in 2007.

Office of Federal Housing Oversight (OFHEO) director James Lockhart announced earlier this month that the office would defer any reduction in the conforming loan limit for one year to “ensure an orderly and transparent process for any downward adjustment.”

The conforming loan limit determines the maximum size of loans eligible for purchase by government sponsored mortgage repurchasers Fannie and Freddie. The limit is tied to the October-to-October change in average house price in the monthly interest-rate survey conduced by the Federal Housing Finance Board.

A mortgage fraud ring that allegedly obtained more than $10 million in loans on 30 properties in Broward County, Fla., has led to the indictment of 11 people accused of using straw buyers and stolen identities to defraud lenders.

Authorities are seeking the extradition of the alleged mastermind of the scheme, Yvette Scott Patterson, from Jamaica, along with her husband, Delroy.

Patterson, 40, allegedly used her mortgage business, Khadmilroy Inc., to carry out the scheme, taking in approximately $300,000 in loan closing fees, mortgage broker fees and yield premiums in connection with fraudulently procured mortgages.

The rate of existing-home sales ended a six-month slide and rose 0.5 percent in October compared to September, though the rate was 11.5 percent below the October 2005 level, according to a National Association of Realtors report today.

Total existing-home sales — including single-family, townhomes, condominiums and co-ops — reached a seasonally adjusted annual rate of 6.24 million units in October. This rate is a projection of a monthly sales total over a 12-month period, adjusted for seasonal fluctuations in sales activity.

Dear Barry,

As a veteran Realtor, I’m writing to disagree with the advice you gave in a recent column. Basically, you said that sellers should provide additional information to buyers if they believe the home inspection report is incomplete or incorrect. This is very misleading to your readers. There’s nothing in the disclosure law or in the disclosure forms that compels sellers to double-check or amend the disclosures in the home inspector’s report. How can a seller know more than a home inspector about property defects? And since when are sellers expected to review and correct the findings of a home inspector? This kind of misinformation can create confusion in real estate transactions and may increase liability for everyone involved. Don’t you think this warrants reconsideration? –Michael