Senators urge Fannie Mae and Freddie Mac not to foreclose on mortgages they hold and help borrowers stay in homes.
September 11, 2008: 1:41 PM EDT
WASHINGTON(AP) -- Senate Democrats are urging Fannie Mae and Freddie Mac to immediately freeze foreclosures on mortgages they hold.
The troubled home loan giants, seized by the government Sunday, should instead work to help struggling borrowers stay in their homes, four senators say in a letter to the firms' new chief executives and the regulator now controlling them. They're calling for a 90-day freeze on foreclosures.
Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) together hold or guarantee some $5 trillion in outstanding mortgages -- more than half the nation's total.
The Bush administration announced Sunday it was taking over the two companies in a bid to help reverse a prolonged housing and credit crisis.
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