On Monday, American Banker reported that affordable-housing advocates were arguing that Freddie Mac and its larger rival, Fannie Mae, should be barred from buying subprime loans on the theory that their purchases could encourage predatory lending.

The McLean, Va., company later asked to give a detailed accounting of its efforts to crack down on predatory lending. That response, in a letter from chief credit officer, David A. Andrukonis, follows:

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