The American Bankers Association is asking Fannie Mae's regulator to halt a plan to slash the prices the housing giant and troubled borrowers pay for property insurance, citing a "lack of transparency and the absence of public input."

The banking trade group's Jan. 2 letter marks the industry's first public response to the Fannie plan, which was reported by American Banker in November. The public request that the Federal Housing Finance Agency submit the plan to a formal comment is an admission that only Fannie Mae's overseer can now delay or halt the government-sponsored entity's effort.

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