Congress should repeal legislation raising the FHAs maximum loan limit before the agencys losses skyrocket, triggering a massive taxpayer bailout, warned the American Enterprise Institute. In a new research paper, Peter Wallison and Edward Pinto, resident fellows at the AEI, urged Congress to correct its mistake of restoring the pre-Oct. 1 temporary maximum loan limits of $729,750 for FHA while leaving Fannie Mae and Freddie Mac at the lower permanent high-cost loan limit of $625,500 set by Congress in 2008. Congress should bite the bullet recognize the losses that are already embedded in the FHAs insurance fund and adopt reforms to the agencys accounting and underwriting that will stop the bleeding, the two public policy analysts said. Last fall, the FHA came under fire from Republicans and conservatives after an independent actuarial review of the agencys Mutual Mortgage Insurance Fund found ...