U.S. To Bolster Aid to State and Local Housing Agencies
FREE Breaking News Alerts from StreetInsider.com!
StreetInsider.com Top Tickers, 11/4/2026
- Wall Street ends higher after Democrats win Congress; data center stocks tumble
- What the Democratic sweep in the midterms means for markets
- SpaceX, Tesla slide as election risks mount, Morgan Stanley turns bullish
- CVS Health plans to split into two public companies by 2028
- AI sector outlook darkens as Democrat wins threaten $900B capex cycle
Tweet
Share
E-mail
The Treasury announced today an initiative under the Homeowner Affordability and Stability Plan to aid state and local housing finance agencies (HFA) in providing affordable home ownership and rental opportunities for low and middle income borrowers to counteract the current challenges of the housing market.
The U.S. Treasury department reiterated on several occasions today that the taxpayers will not take on the cost of the program.
"Expected cost to the federal government is zero," said Michael Barr, an assistant treasury secretary.
HFAs looking to participate in the program will have to pay a fee to the Treasury to offset the inherent risk that comes with this program.
Officials declined to comment on the total cost of the bond program, saying that it would be determined by the demand shown.
Bringing another measure of security to the program will be a Temporary Credit and Liquidity Program (TCLP) issued by Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). The TCLP will provide immediate relief to the HFAs that will allow them to resume assisting working families with housing resources.
"We look forward to working with state and local housing finance agencies, the Administration and the Federal Housing Finance Agency over the coming months to implement this crucial initiative to deliver affordable housing credit to local markets across the nation," Charles E. Haldeman, Jr, CEO Freddie Mac stated after the Treasury's announcement today.
While the agencies do not make up a large portion of the housing market, they will be able to increase the amount of tax-exempt bonds to sell from $4 billion back to a normal $16 billion through the efforts of this initiative. However HFAs that are planning to participate in the program will have to purchase their bonds by December 31, 2009.
Current market movement for Fannie Mae (NYSE: FNM) -21.23% and Freddie Mac (NYSE: FRE) -22.09%. Both are lower following a downgrade at KBW.
The U.S. Treasury department reiterated on several occasions today that the taxpayers will not take on the cost of the program.
"Expected cost to the federal government is zero," said Michael Barr, an assistant treasury secretary.
HFAs looking to participate in the program will have to pay a fee to the Treasury to offset the inherent risk that comes with this program.
Officials declined to comment on the total cost of the bond program, saying that it would be determined by the demand shown.
Bringing another measure of security to the program will be a Temporary Credit and Liquidity Program (TCLP) issued by Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE). The TCLP will provide immediate relief to the HFAs that will allow them to resume assisting working families with housing resources.
"We look forward to working with state and local housing finance agencies, the Administration and the Federal Housing Finance Agency over the coming months to implement this crucial initiative to deliver affordable housing credit to local markets across the nation," Charles E. Haldeman, Jr, CEO Freddie Mac stated after the Treasury's announcement today.
While the agencies do not make up a large portion of the housing market, they will be able to increase the amount of tax-exempt bonds to sell from $4 billion back to a normal $16 billion through the efforts of this initiative. However HFAs that are planning to participate in the program will have to purchase their bonds by December 31, 2009.
Current market movement for Fannie Mae (NYSE: FNM) -21.23% and Freddie Mac (NYSE: FRE) -22.09%. Both are lower following a downgrade at KBW.
You May Also Be Interested In
- FF EAI Robotics signs MOU with two universities for robotics lab
- Prospect Capital (PSEC) Tops Q3 EPS by 5c
- Evommune raises $30M in private placement at $6.04 per share
Create E-mail Alert Related Categories
General NewsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
