The House and Senate approved a measure late Thursday that would let the government-sponsored enterprises buy or guarantee larger loans for one more year.

Under the provision, Fannie Mae and Freddie Mac — as well as the Federal Housing Administration — could back loans as large as $729,750 through the end of 2010. Without an extension, the cap is set to return to its previous limit of $625,000 at yearend.

President Obama is expected to sign the legislation soon.

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