Treasury Secretary Hank Paulson is calling on Freddie Mac and Fannie Mae to work closely with private lenders to make affordable mortgage products more available and to increase funds so those in risky adjustable mortgages can refinance. Starting in April 2007, Freddie Mac began to dedicate billions to buying refinanced mortgages designed to help troubled borrowers stay in their homes. Paulson would expand on initiatives like this. Offering affordable mortgage products, through such agencies as the Federal Housing Administration (FHA), is part of Paulson’s prescription. In August, President Bush announced a plan to make these loans available to more Americans. FHA loans carry competitive interest rates, require little in the way of down payments and are popular with lenders because they are backed by the Federal Government. They are aimed at increasing home-buying opportunities for low- and moderate-income Americans. Serving Two Masters, Yet Out of Control: Fannie Mae and Freddie Mac

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