By Kristin Roberts, Reuters
Legislation to be debated Wednesday to overhaul regulation of Fannie Mae and Freddie Mac has been changed to allow the mortgage giants to buy higher-cost loans in pricey markets, according to the revised bill from the House Financial Services Committee.
The new version of the House bill adds a high-cost loan limit, which would allow Fannie Mae and Freddie Mac to purchase higher-value home loans originated in high-cost areas. Some have argued raising the ceiling on the size of a loan Fannie and Freddie can buy in certain high-cost markets would help wealthy buyers, rather than low- and moderate-income people.
For this complete story, please visit US House GSE Bill Changed, Adds High-cost Loan Cap.
