Fannie Mae Preferred S (FNMAS)

[taintedfud]

These advocates are looking to Mr. Watt to direct the two government-controlled firms to make mortgages more broadly available to families with imperfect credit, to write down loan balances for underwater borrowers (those who owe more than their homes are worth), and to refinance still others into low-interest rate loans. These actions would mean increased risks and lower income for Fannie and Freddie, and thus for taxpayers, who own 79.9 percent of the two companies and have an additional $188 billion stake in the form of preferred shares. In other words, housing advocates are looking for Mr. Watt to have the companies effectively undertake government spending using his regulatory authority rather than doing so through a vote of Congress.