WASHINGTON - Butting heads with the Obama administration, a group of 37 lawmakers on Thursday called for a short-term extension of regulations that would allow the maximum size of loans that can be guaranteed by government controlled mortgage giants Fannie Mae and Freddie Mac remain at the current level of $729,750. Without action by Congress, the limit on loans that Fannie and Freddie can guarantee will drop back to a maximum of $625,500 effective Oct, 1. The group, led by Rep. Gary Ackerman (D., N.Y.), sent a letter to top lawmakers on the House Appropriations committee urging them to attach a provision accomplishing that to must-pass, so-called continuing resolution bill, a temporary funding measure that would keep the government running when the fiscal year 2012 begins on Oct. 1. The request goes against a Treasury recommendation made in February seeking that Congress not pass new legislation continuing the current level.
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