Federal Reserve Chairman, Ben Bernanke is in favor of use of short term economic stimulus measures to stabilize the current situation.In this context NAR has suggested that some of the constraints on 2 GSEs (Fannie Mae & Freddie Mac) should be relaxed.
Dick Gaylord (NAR President) is of the opinion that conforming loan limits for the 2 GSEs should be increased. NAR wants the limit to be increased to $625,000 from $417,000. The President said that increasing the conforming loan limit would improve liquidity & boost buyer confidence levels.
Gaylord said -
Stanford Group estimates on the maximum loan size which can be guaranteed by Freddie Mac or Fannie Mae for high cost areas according to the stimulus plan by Congress :
