Yesterday, it looked as though the conforming loan limit increase, a part of the economic stimulus package that includes a tax rebate, would sail through the Senate, along with the rest of the package. Today a debate is raging about whether it is a good idea to increase the conforming loan limit.
The worry is that saddling Fannie Mae and Freddie Mac with these loans in larger 
amounts would be harmful to the economy, and to other homeowners, rather than helpful. Inman News reports on the conforming loan limit debate:
The National Association of Realtors has estimated that raising the conforming loan limit to $625,000 would prevent 140,000 to 210,000 foreclosures and prop up home prices by 2 to 3 percentage points. But critics say increasing the limit could hurt Fannie and Freddie's mission of helping low- and moderate-income families and put them at greater financial risk.
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