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 Last week the president signed a bill increasing the loan amounts that GBS (government backed securities), such as FHA, Fannie Mae can purchase. It was increased from $417,000 up to 125% what the median home value is in the area where the home is. These loans are called Jumbo loans and typically carry a higher percentage rate than loans less then $417,000. What the Government is trying to do is to stimulate the housing market. 

 However, the GBSs are also having liquidity problems and may need to sell these new light jumbo mortgages on the secondary market. Will the secondary market, with all that is gowing on in the credit market, want these light jumbo loans? Time will tell.

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