Seventy-one U.S. markets get new mortgage loan limits
WASHINGTON (Reuters) - Many high-cost homes in 71 housing markets around the United States are now eligible for financing through Fannie Mae (FNM.N) and Freddie Mac (FRE.N), the companies' federal regulator said on Thursday.
As part of an economic stimulus package, the two government-sponsored enterprises will be permitted to finance loans as large as $729,750 in an effort to stabilize the housing finance sector. The new loan levels are calculated based on a market's current home prices.
In recent months, investors have shunned mortgage investments that did not pass through Fannie Mae or Freddie Mac because Wall Street views their government charter as an implicit guarantee.
The new loan limits apply for home loans originated from July 1, 2007 through the end of this year.
Many regions that already have costly housing markets will get the biggest boost, such as the New York City suburbs and the greater Washington D.C. area. California alone claims 28 of the new markets.
For a list of these areas, please click on: here
(Reporting by Patrick Rucker; Editing by Jonathan Oatis)
