In a canned statement today, Amy Bonitatibus, FnMa Senior Manager, Communications told the media, “the temporary increase in the GSE loan limit that President Bush signed into law today will help bring stability, liquidity and affordability to an important part of the housing finance system. Fannie Mae welcomes this opportunity to help support the housing market in high-cost areas, and we are working with our regulators and our lender partners to implement the change as quickly as possible.” I am not sure if management believes this or agrees with this call for help by the government. I truly think that they know this will not solve the economic and housing problems of late. What they do know, is that it will only cause more risk for the company and their investors.  When the increased loan amounts have been set for each area and the lending guidelines are in place, a bull’s rush of jumbo loan borrowers will cause a mini refi boom.  The result will be a savings for high-end borrowers and nothing for the middle to lower class.  What a great idea! – Dale Siegel