Fannie Mae to End Lobbying Role

Fannie Mae said it no longer would take an active role in shaping state legislation on predatory lending after some housing advocates said the largest buyer of mortgages was seeking exemptions from the laws.

“We will monitor anti-predatory lending legislative efforts at the state level, but will not take an active role in shaping such legislation,” the government-sponsored enterprise said.

The statement followed the offer of legislation by Senate Banking Committee Chairman Paul S. Sarbanes (D-Md.) to prevent the growth of predatory mortgage lending. Sarbanes said he had some concerns about Fannie Mae after it was reported that the company asked to be exempted from predatory lending laws in California and Georgia.