Struggling state and local housing agencies could receive much needed aid to help them continue offering mortgages to low- and moderate- income borrowers, under a program that would provide as much as $35 billion.
The measure would involve the administration purchasing the debt that these housing agencies rely on for financing. The Treasury Department, along with Fannie Mae and Freddie Mac, is expected to buy as much as $20 billion of new housing bonds issued by the state agencies and provide $15 billion in additional funding, as needed, to help the agencies continue to use a type of inexpensive, short-term financing. The measure could be announced as early as this week, and may last for as long as three years.
Do you Want to say something?