Posted on 09/19/2008 5:01:36 PM PDT by fightinJAG
Housing finance company Freddie Mac plans to put $1 billion into mortgages and home-repair loans in areas damaged by Hurricane Katrina, an effort praised by critics of the company as Congress considers legislation to increase regulation of Freddie and its larger rival, Fannie Mae.
In Baton Rouge, La., yesterday, Freddie Mac chairman and chief executive Richard F. Syron and members of the Louisiana congressional delegation announced Freddie Mac's plan to buy $1 billion worth of bonds from state and local housing finance agencies. By accepting a below-market rate of return on the bonds, the purchase will allow cut-rate financing for homeowners.
[snip]
Freddie Mac and Fannie Mae have "stepped to the plate in a big way on Katrina, while the rest of the banking industry is squabbling over how to shift their losses to taxpayers. That point won't be lost on Congress," said Howard Glaser, a housing industry consultant.
Freddie Mac seems to have tempered criticism from some of its fiercest opponents, including Rep. Richard A. Baker (R-La.), who has argued for years to increase oversight of Freddie Mac and Fannie Mae. Baker said yesterday in a news release that Freddie Mac's bond purchase would help provide homeownership opportunities "as we turn our focus from the temporary to the long-term housing needs of storm victims."
Last month, Freddie Mac was praised by another critic, Housing and Urban Development Secretary Alphonso Jackson, after the company pledged to buy up to $300 million in mortgages in hurricane-affected areas.
Syron, in an interview, said the company's good works were not intended to influence the congressional debate. "We're not doing this for any signal reason. . . . There could be no legislation and we'd still be doing this," he said.
(Excerpt) Read more at washingtonpost.com ...
bwaaaahahaha - freddie mac don’t have a billion dollars.
WorkerbeeCitizen: “bwaaaahahaha - freddie mac don’t have a billion dollars.”
Like THAT ever stopped them! BWAAAHAHAHA!
This is just another way the Katrina bail-out was the worst investment ever.
This is a 2005 story.
I believe millions of Obama supporters are sending him thier house payments and maxing out their credit card and taking out new credit cards in order to make more contributions to his campaigne without any intention of paying the money back.
I wonder how many Democrat politicians in LA feasted on Fannie Mae’s money. Where are the results of these loans? How many houses were built? Does anyone ever follow up on these shady deals?
That’s what I want to know: WHERE ARE THE HOUSES?
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