Realtors Seek Loan-Limit Hike With Stimulus -- ZT

Raising the Fannie Mae and Freddie Mac loan limit to
$625,000 as part of a stimulus package could help 140,000
to 210,000 families escape foreclosure, increase home sales,
and boost economic activity by $42 billion, according to
the National Association of Realtors.

Congress and the Bush administration are trying to put
together a $100-150 billion stimulus package that features
mainly tax rebates for consumers and accelerated writeoffs
for businesses.

President Bush called for quick passage of a Federal
Housing Administration reform bill on Friday in discussing
his approach to a stimulus package.

But he did not mention the GSEs. The Realtors want the
GSE loan limit raised from $417,000 to $625,000 to
address the lack of liquidity and the high interest
rates in the jumbo mortgage market.

This is the quickest way to help the hurting housing
market, Mr. Gaylord said.