Fannie and Freddie jumbo loans in jeopardy?

Scott Van Voorhis over at the Boston Real Estate Now blog makes a great observation today. The time limit is approaching on the amount for “jumbo loans” that Fannie and Freddie can back. Congress temporarily boosted the allowable limit from $523,750 to $729,750 two years ago (ending in 2010). Scott points out that some banks may start backing off from these if no decision is made to continue the upped limit. Good points brought up in his blog post here.