The current administration has announced still another initiative in an effort to prop up the housing market.
Declining to put a pricetag on the program and insisting there would be no cost to taxpayers, officials unveiled a plan to aid state and local housing finance agencies, which provide mortgages to first-time and lower-income homebuyers and enable the development or rehabilitation of rental properties.
Treasury Secretary Tim Geithner said: "This initiative is critical to helping working families maintain access to affordable rental housing and homeownership in tough economic times."
Under this new initiative, the Treasury Department, along with Fannie Mae and Freddie Mac, will purchase housing bonds issued by the finance agencies. This will give the groups the funding needed to make new loans. Also, the government will provide a temporary credit program to allow the agencies to refinance their existing bonds to more favorable terms.
The measure will enable housing agencies to lend to hundreds of thousands of families and enable the development or rehabilitation of tens of thousands of rental units, administration officials said. The agencies operate in all 50 states and in many cities.
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