Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Businessweek Archives

Fannie Mae's Line In The Sand

Up Front


FANNIE MAE, AS savvy politically as it is financially, is fighting a Clinton Administration plan to boost low-income mortgage lending. The Federal National Mortgage Assn., a federally chartered private company that buys mortgages from lenders and bundles them into bonds, has called in a cavalcade of big-time pols to help.

At issue is a program by Fannie to spur lending for affordable housing in urban and rural areas, to low- and moderate-income homebuyers. Fannie chief James Johnson, a former Walter Mondale aide, is upset over pressure from the Housing & Urban Development Dept. to focus on minority and low-income buyers regardless of their location. And HUD has considered making Fannie police bias by lenders, which Johnson sees as unworkable.

Fannie Mae complains that the HUD plan would ignore the urban middle class, potentially prompting their exodus from cities. Johnson has enlisted the mayors of Boston, Chicago, and Oakland as well as Representatives Barney Frank (D-Mass.) and Charles Schumer (D-N.Y.) to lobby against the HUD plan. Their impact has been felt. The word is that HUD thus far has backed off on the idea of Fannie Mae as an antibias enforcer. EDITED BY LARRY LIGHT & JULIE TILSNER By Amy Barrett

blog comments powered by Disqus