A government study slated for release today concludes expanding FHA mortgage insurance limits would increase defaults and do little to help more families afford homes.

In his fiscal year 1999 budget, President Clinton proposed increasing the size mortgage the FHA may insure to 100% of the Fannie Mae/Freddie Mac limit, which is $227,150 this year. Currently the FHA may insure loans up to 95% of the median home price in each market, with the maximum loan set at $170,362.

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