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US Bill Would Require Fannie, Freddie to Buy Construction Loans

BY MT Newswires | AGENCY | 07:53 PM EDT

07:53 PM EDT, 06/25/2026 (MT Newswires) -- Republican Representative Scott Fitzgerald introduced legislation on Thursday that would require Fannie Mae and Freddie Mac to buy homebuilder construction loans and package them into securities, in a bid to lower construction financing costs and boost housing supply, Bloomberg reported.

The proposal, dubbed the "Working Families Home Construction Act of 2026," would require homes financed through the program to be sold to buyers earning between 90% and 130% of the local median income.

By taking on more construction loan risk, the government-sponsored enterprises could encourage lenders to extend more financing to homebuilders, according to Bloomberg.

Fitzgerald also introduced separate bills to end the government conservatorship of Fannie Mae and Freddie Mac and simplify mortgage disclosure rules adopted after the 2008 financial crisis, Bloomberg reported.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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