2 in House warn Freddie on loan-limit increase

Reps. Rick Lazio and Richard H. Baker are fighting plans by the Federal Home Loan Mortgage Corp. to raise the limit for its individual loans to $207,000 in 1996. The agency wants to increase the limit from $203,150 to allow customers the opportunity to borrow more money, but Lazio and Baker appear to believe that the program is taking market share away from thrifts. They may have been swayed by a letter from the Western League of Savings asking them to oppose the increase.
Two key members of the House Banking Committee are threatening congressional action if Freddie Mac does not reverse its decision to raise its individual-loan limit to $207,000 for 1996. The [...]