Conforming loan limits should be lowered to help draw private capital into the mortgage market, according to recommendations from a bipartisan think tank led by former policymakers. The Bipartisan Policy Center recommended phasing out the government-sponsored enterprises and replacing them with a new “Public Guarantor” that would shift mortgage finance risk to the private sector. “A gradual reduction of the loan limits for government-guaranteed mortgages would help to rebalance the ...