Pols Reconsidering Jumbo Loan Mandate

Key congressional supporters of raising the conforming-loan limit are reconsidering a provision in a GSE reform bill that would require Fannie Mae and Freddie Mac to securitize and sell all jumbo mortgages.Reps. Barney Frank, D-Mass., and Gary Miller, R-Calif., commented at a hearing on rising foreclosures that securitization makes it very difficult to restructure the loans when borrowers get into trouble. Rep. Frank, chairman of the House Financial Services Committee, said it might be better for the government-sponsored enterprises to keep those loans in portfolio. On March 28, the committee approved a GSE regulatory reform bill that raises the conforming-loan limit in high-cost areas.