Freddie Mac said it will not dramatically discount its backlog of foreclosed homes, arguing that such steep price cuts could destroy the housing market.

The government-sponsored enterprise told investors this month that it is currently selling 90% of its real estate-owned properties at asking prices and is not considering "significant discount pricing," according to a letter obtained by American Banker.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.