Fannie and Freddie's $417,000 Cap to be Lifted to $700,000?

Breitbart reports:

Rep. Barney Frank, D-Mass., said negotiators also were near an agreement on an overhaul of the Federal Housing Administration that would make it easier for thousands of homeowners with ballooning interest rates to refinance into federally insured loans. That measure might advance separately of the tax relief package, however.

Both sides agreed to allow Fannie Mae and Freddie Mac—government- sponsored companies that are the two biggest U.S. financers and guarantors of home loans—to buy loans much larger than the current $417,000 limit, aides and lobbyists said. Frank said that lending cap might reach as high as $700,000 in areas with the highest home prices.

The dumb government idea of the day.