Mortgage Banks Question U.S. Goal for Fannie, Freddie

WASHINGTON – U.S. mortgage bankers worry new affordable housing goals the government wants for mortgage finance companies Fannie Mae and Freddie Mac are overly ambitious and could cause uncertainty, an industry official said on Monday.

“To the extent that the goals are set too high, and our estimates are that some of the estimates are too high, you end up creating operational problems for the mortgage industry,” said Jay Brinkmann, vice president for research and economics at the Mortgage Bankers Association.

Mortgage bankers would be left guessing what changes Fannie Mae and Freddie Mac will make to adapt to the higher goals, he said at a conference at the American Enterprise Institute.

The two shareholder-owned, congressionally chartered companies own or have guaranteed more than 45 percent of U.S. mortgage debt outstanding and play major roles in the industry.

For this complete story, please visit Mortgage Banks Question U.S. Goal for Fannie, Freddie.