The Obama administration last week pushed the Department of Housing and Urban Development and the Federal Housing Finance Agency to consider reducing the high-cost conforming loan limits beginning in 2013. However, significant opposition from Realtors, home builders and members on both sides of the aisle in Congress has prevented previously planned declines. “In order to reduce the government’s footprint over several years, we recommend allowing FHA loan limits to fall at the end of 2013 as currently scheduled,” the Obama administration said. “Beyond that, HUD and FHFA should closely examine using their existing authorities to reduce loan limits further consistent with the pace of the recovery, market developments, and the administration’s principles and transition plan for housing finance reform.” In 2008, Congress increased...