Loan Limit Increase

According to a report in the Wall Street Journal U.S. House and Senate lawmakers are making a proposal to extend the time for the temporary higher limits on the amount used for home mortgages issued by Freddie Mac and Fannie Mae are able to buy or guarantee as a part of the temporary solution funding legislation that, by the end of this week, could be passed by Congress.

Stated in a press release by Sen. Daniel Inouye of Hawaii and Rep. David Obey of Wisconsin, the continuing resolution legislation give lawmakers more time to complete appropriation measures. The legislation would also extend loan limits, currently set to end on December 31, 2009, through the end of next year.

While the legislation must still pass through both houses of Congress, it would extend the temporary limits on the size of mortgages the FHA would be able to insure.