MBA Calls for Extending 'Temporary' Hike in Loan Limit--ZT

The Mortgage Bankers Association(MBA) is recommending increasing
the size of mortgage loans that Fannie Mae, Freddie Mac and the
Federal Housing Administration can purchase in high-cost markets
like California and New York.

The 2008 Economic Stimulus Plan, enacted in February, temporarily
increased the size of mortgage loans purchased by FHA and the
government-sponsored enterprises to as much as $729,750, enabling
many borrowers in high-cost metro areas to refinance.

The temporary stimulus expires at year-end and loan limits next
year will be determined by a provision of the American Housing
Rescue and Foreclosure Prevention Act, which sets both conforming
and FHA loan limits to 115% of the local median home price,
not to exceed $625,000