WASHINGTON — Two House members announced a bill Friday that would prolong the temporary increase in the size of home loans backed by Fannie Mae, Freddie Mac and the Federal Housing Administration.
The bill, sponsored by Reps. John Campbell, R-Calif., and Gary Ackerman, D-N.Y., would extend the higher "conforming" loan limits through Sept. 20, 2013.
In an attempt to spur the housing market in 2008, Congress had increased the limit on loans that Fannie, Freddie and FHA could buy or guarantee. While the limits vary by region, the 2008 law increased it from $625,500 to $729,750 in the costliest areas. Without a change in law, the prior ceiling will be reinstated on Oct. 1.
"Housing makes up one sixth of the American economy and is a key component to our economic recovery," Campbell said in a press release. "This will not only help to stabilize home prices, but would also provide for continued recovery in the broader economy."
