After a half-decade of tightening mortgage guidelines, banks are starting to “loosen up”.

In 2012, for the 7th straight year, the national, single-family conforming mortgage loan limit will remain at $417,000.

As signed into law last Friday, maximum FHA loan limits are — once again — as high as $729,750.

Tuesday, Fannie Mae and Freddie Mac unveiled lender instructions for the government’s revamped HARP program.

After a 2-year easing cycle, the nation’s biggest bank banks report that they’ve reversed course, and are raising the bar on mortgage approvals.

The Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give “underwater homeowners” opportunity to refinance.

For homeowners in high-cost areas nationwide, conforming and FHA loan limits have dropped by as much as 14 percent.

Mortgage guidelines appear to be tightening with the nation’s largest banks.

The FHA is insuring a greater percentage of loans than during any time in recent history. In 2006, it insured roughly 5 percent of the purchase mortgage market. Today, it insures one-quarter. “Going FHA” is more common than ever before — but is it better?

If you live in a high-cost area, keep an eye on your calendar. Effective October 1, 2011, temporary conforming loan limits will be lowered nationwide. Perhaps by as much as 14 percent.