Posted on 01/30/2009 2:36:56 PM PST by Laissez-faire capitalist
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Coporation is easing the credit requirements on loans that it will purchase from banks and other lenders.
The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring. [And they did]
Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people...
... In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers ...
(Excerpt) Read more at query.nytimes.com ...
ping
I see that it was clearly George W Bush’s fault.
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