http://www.reuters.com/article/idUSN2928021020100930?loomia_ow=t0:s0:a49:g43:r4:c0.100000:b38040102:z0
The collusion of Congress with the mortgage banking industry.
The bloat of Fannie and Freddie is already on the backs of the taxpayer and Congress votes in favor of the mortgage banks to ensure the taxpayer is burdened even more
WASHINGTON, Sept 30 (Reuters) - The U.S. Congress on Thursday voted to extend higher loan limits for government-backed mortgages, a move that should help keep borrowing costs low and support the shaky housing sector.
At the height of the financial crisis in 2008, the government raised the ceiling on the size of loans Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) could buy. At the time, the private market for so-called jumbo loans had all but dried up.
The legislation approved by the House of Representatives and Senate, which President Barack Obama is expected to sign into law, would keep in place until October 2011 the higher $729,750 ceiling for single-family home mortgages in high cost areas other than Hawaii and Alaska.
The cap was scheduled to shrink to $625,500 at the start of 2011
