“We’re continuing to go down a trail in which we see the Treasury, through the backstop of Fannie and Freddie in conservatorship, backing larger and larger loans, taking up more and more of the market,” said Ed DeMarco, a former top FHFA official who is now president of the Housing Policy Council, a housing-industry trade group. “At some point, you would expect Treasury and the Congress would want to ask, is this really where we want to be going?”
Mr. DeMarco’s group favors the FHFA using its powers as conservator of Fannie and Freddie to either freeze or drop the loan limits, essentially overruling the annual formula that calls for a rise in loan limits.
Read the full article here: Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1 Million as Prices Soar