Tuesday, September 13, 2011

U.S. lawmakers debate housing finance reform

 * Fannie Mae, Freddie Mac drawn $170 bln in taxpayer funds

 * Many Republicans want to end federal backstop in housing

 * Conforming loan limits on gov't mortgages expire Oct. 1

 By Margaret Chadbourn

 WASHINGTON, Sept 13 (Reuters) - Top Senate lawmakers on
Tuesday laid bare long-standing differences on how to wind down
government-sponsored mortgage enterprises Fannie Mae (FNMA.OB)
and Freddie Mac (FMCC.OB), underscoring the difficulty Congress
will face in revamping the U.S. housing finance system.

 Democrats and Republicans alike agree both entities should
be wound down but whether the government should still have a
role subsidizing housing finance is still unsettled.


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