A spokesperson for Rep. Barney Frank (D-Mass.) told HousingWire Friday the Obama administration has begun work on a proposal to extend the conforming loan limits, which are set to expire in October. In February, the administration put out a white paper, providing Congress three options for winding down mortgage giants Fannie Mae and Freddie Mac.
Allowing the conforming loan limits – the maximum size of a mortgage the government can guarantee or buy – would be the first step toward allowing the private market to rejuvenate, the administration said at the time.
However, funding for mortgages outside Fannie, Freddie or the Federal Housing Administration remains barren, even according to one of the industry's largest trade groups, the Mortgage Bankers Association.
"[Rep. Frank] believes that the administration is working on an extension, but he doesn’t know what legislative vehicle would be used," the spokesman said.
Rep. John Campbell (R-Calif.) and Rep. Gary Ackerman (D-N.Y.) introduced a bill last week that would extend the elevated loan limits for another two years.
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