Fannie Mae and Freddie Mac have built their businesses around providing housing opportunities for the common' American. But amid pressure from mounting mortgage resets, Federal Reserve Chairman Ben Bernanke has floated the idea of raising Fannie and Freddie conforming limits to include Jumbo loans up to $1 million, which some market participants feel will not garner enough support.
"What Fannie and Freddie come from, what their roots are, is promoting home ownership for regular Americans, not rich Americans," said a market participant. "I think that raising the conforming loan limit to $1 million represents bad public policy. You are devoting tax payer resources to promote housing for rich people. And you don't need to do that," he said.