US Representative Barney Frank, Democrat of Massachusetts, said Friday that he wants jumbo limits to be raised again – to the previous level, if not higher.
Frank, chairman of the House Committee on Financial Services, pledged to include a provision for this in the economic stimulus bill Congress is expected to take up with President-elect Barack Obama. He also wants to change the way the loan limits are calculated to reflect real market conditions.
“Even if you accept the principal we shouldn’t be financing luxury housing; what’s a luxury house in Nebraska is an average house in Quincy,” Frank said. “I’m lobbying hard to get at least last year’s level to be put back where it was.”
Is he seriously arguing that the government should be financing luxury housing?