Lenders Are Afraid Of Fannie Mae, Freddie Mac

Big lenders are complaining that these mortgage giants, created by the government to encourage home ownership, have overstepped their roles.

1 minute read

April 5, 2001, 11:00 AM PDT

By Chris Steins @planetizen


"In recent weeks, the likes of Wells Fargo & Co., American International Group Inc. and General Electric Co.'s GE Capital unit have amplified longstanding complaints about Fannie Mae and Freddie Mac. Started decades ago by the federal government to make the mortgage market run more smoothly, Fannie and Freddie buy mortgages from lenders and package loans for sale to institutional investors. But Wells Fargo, AIG and GE Capital say that, contrary to their innocuous names, Fannie and Freddie are improperly expanding beyond their original purpose and using bullying tactics to stifle criticism." Concerns are raised over Fannie Mae and Freddie Mac's use of new technologies, which have made them more efficient.

Thanks to Chris Steins

Thursday, April 5, 2001 in Wall St. Journal

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