First, it looks like any constriction of Fannie/Freddie has been postponed – this from HW:
As the debt ceiling talks reached a compromise in Washington, government savings from reducing operations at Fannie Mae and Freddie Mac disappeared from the latest bipartisan proposal from Congress to raise the debt ceiling. (click on link for more details)
Secondly, it looks like once the House passes the debt-ceiling compromise, they will be adjourning immediately for a five-week vacation. By the time they get back to business in mid-September, the reductions in Fannie/Freddie loan amounts will be right on top of them – with only a couple of weeks before October 1st deadline. Congress will wimp out like they do on every tough issue, and reluctantly agree to extend for another year, under pressure from N.A.R. and other mis-guided lobbyists.
A win for buyers? Sort of, but I doubt anyone will be dancing in the streets.