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Executives to Testify
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The former executives of
Fannie May and Freddie Mac are coming to Congress to testify.
Lawmakers want to find out who?deserves most of blame for the
collapse and eventual government takeover of these mortgage
finance titans.
Fannie and Freddie?traditionally backed the?safest loans,
offering 30-year fixed rates with a 20 percent down payment. But
in recent years they lowered their standards, thus matching a
decline fueled by Wall Street banks that had supported the
now-defunct subprime lending industry.
A report released by?a bipartisan commission chaired by former
Housing and Development Secretary Henry Cisneros and Republican
Jack Kemp takes aim at the Bush administration for?the
foreclosure crisis. The report called the system "broken," with
a lack of enforcement
of fair housing laws and a poor response for problems that have
disproportionately hit poor
and minority populations.
Last month Freddie Mac asked for an initial injection of $13.8
billion in government aid after posting a massive loss. |
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