Fannie Mae To Aid Post-Katrina LiquidityNeeds
WASHINGTON - (09/20/05) -- Fannie Mae invited credit unions andbanks in need of liquidity after Hurricane Katrina to bring theirmortgage portfolios to the secondary mortgage market giant forreview for possible purchase. Daniel Mudd, president of Fannie Mae,told an executive of Dow Louisiana FCU during NAFCU's CongressionalCaucus Monday the secondary market giant will review for possiblepurchase millions of dollars in mortgages held by thestorm-stricken credit union. He invited other lenders to offer upany conforming mortgage held in portfolio for review. "We canhelp," Mudd said. The Fannie Mae Chief said his company hasundertaken numerous initiatives aimed at helping victims of themassive storm. That includes making 1,500 foreclosed homes held inportfolio available rent free for people whose homes weredestroyed; authorizing lenders to suspend collections orforeclosures in the affected areas; and an increase in funding forthe area.