Lawmakers should permit the planned lowering of the Fannie Mae, Freddie Mac and Federal Housing Administration loan limit from the current maximum $729,750 to $625,500 as scheduled in October in order to stimulate the private mortgage market, according to the head of California-based Redwood Trust. Redwood President Martin Hughes told members of the Senate Banking Committee’s Subcommittee on Securities, Insurance and Investment last week that “the pervasive below-market government financing in the residential mortgage sector” is…