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Fate of plan to raise conforming loan limit in doubt

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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). It's still unclear exactly how much the conforming loan limit was to increase under the agreement. House Republican Leader John Boehner of Ohio's office said the agreement was to raise the conforming loan limit to $625,000, while House Speaker Nancy Pelosi said Fannie and Freddie would be allowed to purchase mortgages of up to $729,750 in high-cost areas. Both Boehner and Pelosi issued statements saying the agreement between House leaders and the Bush administration called for Federal Housing Adm...