Fannie Mae Agrees Regulation Is Needed

Re “Scrutinizing the Big Lenders,” editorial, Jan. 15: Fannie Mae fully supports having a strong, credible, well-respected regulator that is good for housing market stability and good for our mission to provide affordable mortgage and rental financing for working families. That is why your editorial is so puzzling.

Fannie Mae is committed to bringing important cost savings to home buyers, even in the high-cost housing market of California. Fannie Mae uses private-sector funds, not taxpayer dollars, and is the largest investor in low-income housing tax credits in California for affordable rental housing; the largest investor in mortgage revenue bonds in California that provide below-market financing for first-time home buyers; and, last year alone, provided $573 million to redevelopment agencies in 30 cities, including Los Angeles, for affordable housing projects -- more money than the state received from the federal government’s HOME program. The result in Los Angeles and Orange counties in the last two years: 53,500 low- and moderate-income home buyers, 78,500 minority home buyers and nearly 40,000 first-time home buyers benefited from Fannie Mae.

Fannie Mae is an instrument of national policy. When policymakers return to the discussions about our regulator, we agree that they should be careful to avoid doing anything that could harm the housing finance system, a system that home buyers and the economy need.

Ted Chandler

Vice President, Fannie Mae

Pasadena