Lawmakers Agree to Increase FHA Loan Limits in Spending Bill
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U.S. lawmakers reached an agreement to boost the maximum size of home loans backed by the Federal Housing Administration over opposition from some House Republicans and free-market interest groups.
House and Senate lawmakers drafting language to reconcile a package of spending bills agreed to apply a higher limit of $729,750 to FHA-insured loans, while leaving the limit on loans backed by mortgage companies Fannie Mae and Freddie Mac at the current level of $625,500, according to the proposal released tonight. The Senate measure originally included an increase for loans backed by both the FHA and the government-sponsored enterprises, or GSEs, which have been under government conservatorship since September 2008.