Fannie Mae And Freddie Mac Put In Catch-22 By Bush's HUD Plan

Posted by: Jeffrey Goodman
Thanks to: Jeffrey Goodman

20 June 2004 - 5:00am

The two corporations are being forced by the new guidelines to divert more money from middle-income financing to the poor. Fannie Mae and Freddie Mac call the new rules "unrealistic."

The National Association of Home Builders joined a growing number of organizations, including Freddie Mac and Fannie Mae themselves, in criticizing HUD's new plan for low-income financing. According to the new guidelines, the two government-sponsored enterprises would be directed to loan more money to low-income home buyers without an increase of funding. Consequently, the groups allege, middle-income home-hunters would be shut out of federal funding.

Full Story: Builders to fight Bush's low-income plan

Source: CNNMoney, June 18, 2004