On Oct 1, the ceiling for gov't backed mortages by Fannie, Freddie, and the FHA will be lowered, unless the Congress blocks that action. The upper limit will vary by location, but in the expensive areas like NY and CA, we're talking about dropping from $729,750 to $625,500. So who wants to block the change? Uhuh, democrats from NY and CA, although the WH does support the change. No doubt some repubs too, from the super rich areas of the country. But many repubs see it as a way to reduce the mortgage market's dependence on gov't support, and so far it looks like the change will take effect despite intense lobbying from real estate groups. Somebody correct me if I'm wrong, wasn't Obama's Jobs Bill (pass it now!) supposed to be paid for in part by taking away tax deductions such as this? When it goes down in flames I wonder if he'll blame it just on the repubs and forget to mention that some dems wouldn't go along either.