Fate of plan to raise conforming loan limit in doubt

Proposal could die in Senate debate over stimulus plan

A proposal to increase the $417,000 conforming loan limit faces an uncertain fate in the Senate, where an influential Republican is questioning the wisdom of allowing Fannie Mae and Freddie Mac to buy up or guarantee what are now considered jumbo loans.

House leaders and the Bush administration tentatively agreed last week to boost the conforming loan limit and to raise caps on FHA loan guarantee programs as part of a $150 billion economic stimulus package (see Inman News story).