The White House has repeatedly rejected the idea, saying that Congress must act first to beef up Fannie and Freddie’s regulator.

“The interest rates on 2 million home loans are due to increase radically, but the president won’t adjust his radical ideology,” Schumer said in a statement. “That doesn’t have to be the last word now that Democrats in Congress are coming together to take steps the administration won’t.”

The New York Democrat already introduced legislation in August to loosen the caps for one year, requiring that Fannie and Freddie steer half of the freed-up capital toward buying refinanced loans from sub-prime borrowers.

The bill he dropped on Thursday would lift the caps for only six months with 85 percent of the increase required to fund refinancing of sub-prime borrowers. Also, unlike the first bill, this legislation would not raise Fannie and Freddie’s conforming loan limits.

“As foreclosures continue to mount, it has become clear that any temporary growth of Fannie’s and Freddie’s portfolios needs to be more targeted to helping sub-prime borrowers who are risk of losing their homes,” he said.

Schumer said he plans to attach his bill to “the first available legislative vehicle.”

In a statement Frank said he would introduce similar legislation in the House, but stressed that action on the bill could hinge on whether the Senate moves to reform Fannie and Freddie, known collectively as the government-sponsored enterprises or GSEs.

“I want to add that our ability to move even the limited bill through the House will be very much affected in a positive way by any sign that we can get that the Senate is able to move ahead on the broader bill,” he said.

Earlier this year, Frank steered legislation to create a stronger GSE regulator through his committee and through the House, but the Senate has yet to tackle GSE reform.