WASHINGTON (Reuters) - Two California lawmakers on Monday introduced legislation that would permanently raise the limit on the size of loans that may be financed by Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research).
The bill introduced by Rep. Gary Miller, a Republican, and Rep. Jerry McNerney, a Democrat, would freeze the maximum loan size at $729,750, which is the level recently set under an economic stimulus bill passed early this year.
In a separate move last week, 44 members of Congress from California wrote their Democrat and Republican leadership also asking that Fannie Mae and Freddie Mac, the government-sponsored enterprises, be permitted to hold loans at the higher level and help relieve that state's housing market crisis.
"Californians continue to face home prices substantially higher than the national average," reads the letter to U.S. House of Representatives Speaker Nancy Pelosi and Rep. John Boehner, the minority leader.
All but 11 House members signed the letter that also asks for a permanent lift in the size of loans that may be financed by the Federal Housing Administration.
The House is due to vote later this week on a number of housing aid proposals meant to fortify the ailing homes sector and prevent foreclosures.
