Two congressmen from high cost housing states have introduced
legislation to extend the maximum $729,750 loan limit on
government-backed loans for another two years
 
With the economy remaining fragile and the housing sector still
struggling to recover, now is not the time to make the cost of
mortgages more expensive," Rep. Ackerman said.
 
The reduction in the loan limit would impact 669 counties in
42 states, according to estimates.
 
Meanwhile, the Obama administration and many Republican leaders
support a reduction in the loan limits as a way to diminish
the GSEs' grip on the mortgage market.
 
One observer noted that Congress is unlikely to pass H.R. 2508
as a stand-alone bill, but it could be added to must-pass
legislation, such as the debt ceiling bill, to garner a few
much needed votes to pass the measure.