Bernanke: Conforming loan limit could reach $1 mln

WASHINGTON (Reuters) - If Congress decides to temporarily lift the $417,000 cap on mortgage loans eligible for purchase by Fannie Mae and Freddie Mac, then a reasonable level might be $1 million, Federal Reserve Chairman Ben Bernanke said on Thursday.

Charles Schumer, the New York Democrat who chairs the congressional Joint Economic Committee, asked Bernanke what his thoughts would be on a new upper limit for those loans, and Bernanke replied, "A million."

(Reporting by Emily Kaiser, Editing by Chizu Nomiyama,)