Bill Would Direct Fannie, Freddie FundsTo Katrina Victims

WASHINGTON - (09/15/05) -- A bill introduced in the HouseWednesday would give priority consideration to victims of HurricaneKatrina for the billions of dollars in affordable housing moneyCongress would require from Fannie Mae and Freddie Mac underpending legislation. Disasters that happen in the future wouldreceive similar consideration for the huge pot of new housing fundsbeing contemplated by Congress. The House Financial ServicesCommittee has passed a bill to reform oversight of Fannie Mae andFreddie Mac which includes creation of a new affordable housingfund modeled after that required of Federal Home Loan Banks andwould require the two secondary mortgage market housing giants todonate a portion of their annual profits to the fund. The currentbill would create a housing fund of as much as $5billion.