House leaders have decided to leave Federal Housing Administration reform provisions out of an economic stimulus bill, but the package will include a temporary increase in the FHA loan limits, according to sources. House and Senate banking committee leaders wanted to include FHA reforms in the $150 billion stimulus package, but Treasury Secretary Henry Paulson raised objections. The Bush administration supports quick passage of an FHA reform bill, but "it should be on a separate track," a Treasury spokeswoman said. It appears that the stimulus bill would raise the loan limits for FHA and Fannie Mae and Freddie Mac in high-cost areas to 125% of median area home prices, with a $729,750 cap. This temporary increase would expire at year's end.
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