Washington Post (04/25/08) P. D1; Hilzenrath, David S.
Fannie Mae and Freddie Mac recently informed HUD that market conditions prevented them from achieving affordable housing quotas for 2007, and the agency agreed with the government-sponsored enterprises (GSEs) and announced that they would not be penalized. As a result, Fannie Mae and Freddie Mac do not need to file plans indicating how the quotas will be met. Observers say HUD's decision showcases the government's willingness to accommodate the GSEs--a shift from its previous confrontational stance--in hopes that they will fuel a mortgage market rebound. Freddie Mac Chairman and CEO Richard Syron recently criticized the affordable housing quotas, insisting that they were responsible for the GSEs' investments in subprime mortgages. He noted, "It is not good public policy to have mission goals that encourage [Freddie Mac and Fannie Mae] to put people in homes that they end up losing."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment