Federally backed lending agencies are set to back away from their policy of providing mortgage guarantees for the homes valued in the upper tier. Regulators who set the rules for mortgage finance backer Fannie Mae plan to cut upper loan guarantee limits by as much as one third — from upward of $700,000 to the mid-$400's in some markets. The ripple effect — more foreclosures and falling prices — could be severe in markets where housing costs are highest.
Money
Source: The New York Times
