Monday, May 5, 2008

Rep. Frank wants answers on jumbo loan inaction. - May. 5, 2008

BOSTON (AP) -- A key House lawmaker is complaining the mortgage industry hasn't done its part to make higher-value loans available in costly housing markets after Congress took action in February.

Democrat Barney Frank of Massachusetts said Monday that the House Financial Services Committee that he chairs will hold a May 21 hearing to try to find out why so-called jumbo mortgages remain difficult to get, and often carry high interest rates. Frank will try to get answers from mortgage bankers, Wall Street financiers and government-sponsored mortgage firms Fannie Mae and Freddie Mac.

Frank told a Mortgage Bankers Association Convention in Boston that the various players are pointing fingers at one another more than a month after new regulations took effect. Congress passed a bill allowing Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) to buy and guarantee loans up to more than $700,000, compared with the previous cap of $417,000. See Also

Source: Home Mortgage Rates and Real Estate News


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