Industry News

Lawmakers tap Fannie, Freddie for hurricane relief

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Two key House lawmakers on Wednesday added to a bill tightening regulations on mortgage giants Fannie Mae and Freddie Mac to a provision directing funds to Hurricane Katrina victims, MarketWatch reported today. Under a proposal by Reps. Michael Oxley, R-Ohio, and Richard Baker, R-La., a House bill would send some after-tax profits earned by Fannie Mae and Freddie Mac to victims of the hurricane that hit Baker's home state and others on the Gulf Coast, media reports said. "This is an extraordinarily important step," Baker told a new conference, adding he has a high degree of confidence the bill will make it through the House, MarketWatch reported. Oxley, who chairs the House Financial Services Committee, said he's aiming for a House vote on the bill next week, according to media reports. Fannie and Freddie would have to reserve 3.5 percent of after-tax income for the affordable housing fund for the first two years, then 5 percent in later years, under the proposed legislation, rep...