GSEs Seek Changes in Rules for Awarding CRA Credits
November 5, 2001
Fannie Mae and Freddie Mac are asking federal Community Reinvestment Act enforcers to reconsider current regulations that bar institutions from obtaining lending- and investment-test credits on loans they originate or purchase and later securitize for CRA investment purposes. Under current CRA regulations, originated or purchased loans to lower- and moderate-income individuals are given credit under the lending test, while purchased securities backed by such loans are credited under the investment test. It is one of