WASHINGTON (Dow Jones)A U.S. House lawmaker introduced legislation to restore last years higher limits on the size of mortgage loans Fannie Mae (FNM) and Freddie Mac (FRE) can buy in certain costly markets.
Economic stimulus legislation passed into law last year temporarily lifted the loan limits to nearly $730,000 from $417,000 through the end of 2008. The limits dropped on January 1.
Rep. Gary Miller, Republican of California, introduced legislation Thursday to reinstate the higher limits, arguing the move was crucial for restoring the affordability of mortgages in some regions of the country and stabilizing the housing market. As the crisis in housing markets continues, the availability of affordable mortgage loans remains essential to alleviating the credit crunch and stabilizing the U.S
Should we bring back higher conforming loan limits?
(Dow Jones Newswires 07:36 AM ET 01/16/2009)