Conservatives line up against letting government guarantee more mortgages

{mosads}Other conservative groups, including Americans for Tax Reform and Heritage Action for America, joined the Club for Growth in sending a letter to lawmakers Wednesday criticizing the higher limits as part of the government’s “overwhelming and inefficient mortgage subsidies.”

Housing advocates argue that the higher limits provide a much needed boost to the ailing housing market, as it allows the government to guarantee a larger amount of mortgages, making them more affordable. As the housing sector weighs heavily on the slow economic recovery, they argue help for that market is sorely needed.

But critics of the higher limits, including several prominent House Republicans, oppose it because they are looking to reduce the government’s outsized role in the housing market, not expand it. By gradually lowering those loan limits, the government can exit the housing market and allow the private sector to step in and take its place, they argue.