The Clinton administration said Thursday that Ginnie Mae would slash its guarantee fees on home loans to some urban borrowers.

Henry Cisneros, Secretary of the Department of Housing and Urban Development, said the rebate was expected to generate an additional $1 billion in home loans to borrowers in such cities as Chicago, New York, and Los Angeles. The fees are expected to be cut up to 50%, depending on lender volume. Currently, Ginnie Mae fees are $60 a year per $100,000 loan.

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