Industry News

Bill to limit Fannie, Freddie entangled in dispute

New ban attached; White House objects for other reasons
Published on Oct 26, 2005

A plan for tighter supervision of Fannie Mae is entangled in a dispute over whether money to house low-income people can go to community groups engaging in nonpartisan get-out-the-vote drives, Associated Press reported today. The ban was recently attached to the legislation, which aims to put tighter controls of government-sponsored enterprises Fannie Mae and Freddie Mac into effect. A House vote is expected on the legislation today. Under consideration are restrictions on a special low-income housing fund that the two companies finance. The legislation would prohibit nonprofit community groups from getting any of that money if they've used their own funds for voter registration or get-out-the-vote drives, reports said. The White House opposes the legislation on a broader issue: that it would not force the mortgage companies to reduce their huge holdings, now about $1.5 trillion. An array of civil rights organizations, unions and faith-based groups joined House Democrats in pro...

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