by Calculated Risk on 12/17/2007 03:57:00 PM

From Bloomberg: Paulson Favors Fannie, Freddie Buying Jumbo Mortgages

Paulson said in an interview today that he favors allowing the two companies to purchase so-called jumbo loans, which exceed $417,000. ...

Paulson said he agreed with Federal Reserve Chairman Ben S. Bernanke, who suggested to lawmakers that they consider allowing Fannie Mae and Freddie Mac into the jumbo mortgage market. ``I think Ben Bernanke and I are on the same page,'' Paulson said.

Bernanke indicated in a Nov. 8 hearing that he favored letting Fannie Mae and Freddie Mac buy mortgages of up to $1 million.