Even though the Bush Administration and House leaders agreed on an economic stimulus package last week the included an increase to the conforming loan limit, it still has to be approved by the Senate. And that is far from a done deal. At least one senator is raising questions about the wisdom of allowing Fannie Mae and Freddie Mac to take on great loans. Inman News reports on the latest in the quest for raising the conforming loan limit:

The National Association of Realtors has
estimated that raising the conforming loan limit to $625,000 would
prevent 140,000 to 210,000 foreclosures and prop up home prices by 2 to
3 percentage points.
But critics say increasing the limit could hurt Fannie and Freddie’s
mission of helping low- and moderate-income families and put them at
greater financial risk.