WASHINGTON - In a controversial decision, Freddie Mac said Tuesday it would not reduce the maximium size of home loans it buys, even though the benchmark traditionally used to set the ceiling declined by 3%.

Fannie Mae, the other major player in the secondary market for mortgages, is expected to follow suit.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.