Pelosi Says FHA, Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC) Single Family Loan Limits Extension Critical

The Speaker of the United States House of Representatives, Nancy Pelosi, recently issued a statement regarding the extension of single family loan limits applicable to the Federal Housing Administration (FHA), Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC), which was recently passed by Congress and signed by President Obama. The extension, which is valid up until the end of fiscal year 2011, is expected to ensure the access to affordable home loans to families throughout the US, and is also expected to contribute to the recovery of the US housing market.

Pelosi said, “Democrats understand that strengthening our nation’s housing market is essential to the American economic recovery. To ensure that the housing market continues to recover from the effects of the subprime debacle and the ensuing economic downturn, Congress has taken swift action in the Continuing Resolution to extend single family loan limits for the Federal Housing Administration and Fannie Mae and Freddie Mac through the end of fiscal year 2011.

“An expiration in the higher loan limits could have done great harm to our fragile economy nationwide. Instead, we have helped keep the mortgage market functioning and ensured that home mortgages are available and affordable for consumers. For the Bay Area, where housing costs are among the highest in the nation, this means Americans will continue to be able to have access to the mortgage loans they need.

“Democrats will continue to work toward economic recovery; stabilizing the housing market is critical to that effort. And we will continue standing with President Obama on behalf of middle-class families and America’s Main Street.”