After raising the limits for loans that purchased by Fannie and Freddie, which carry a lower interest rate, in February, Barney Frank is now looking into why so few of the new “non-jumbo jumbo” loans have been made.

The raising of the cap from $417,000 to $729,750 was intended to help property move in high cost markets, like Frank’s district.

The simple reason that he is not seeing much in the way of these loans is because banks are not lending to anyone.

We are seeing an unprecedented tightening in mortgage lending standards, and so very few loans are being made.