California Gov. Arnold Schwarzenegger has joined others in raising his voice for increase in conforming loan limit which currently is at $417,000. This is the present ceiling for mortgage loans which are eligible for guarantee or purchase by Freddie Mac & Fannie Mae.Arnold Schwarzenegger has urged for clearing of legislation to raise this loan limit to $625,000 (considered as jumbo loans) for markets called as high-cost housing markets. He made this request through a letter to congressional leaders & if the conforming loan limit is increased it would allow government chartered mortgage companies to have a major role jumbo loan market in California.
In the letter to House & Senate leaders Schwarzenegger said:
