House Financial Service Chairman Barney Frank, a Massachusetts Democrat, said he expects the measure would increase the value of mortgages that mortgage giants Fannie Mae and Freddie Mac can buy.
Specifically, Frank said Fannie and Freddie would be able to buy mortgages worth up to 125 pct of the median value of a home in any given region, up to a new limit of 730,000 usd. The current limit on so-called conforming loans is 417,000 usd.
The Bush administration has said previously that it opposes this expansion unless it comes with a strengthening of the federal regulator of Fannie and Freddie. However, Frank said he hopes it can still be included based on two assurances from Congress.
So it looks like Frank said that he’s hoping for this. Hopefully it won’t go through.
