GSE critic FM Policy Focus also wants regulators to shut down Fannie Mae's acquisition, development, and construction lending program, arguing that the "venture is not consistent with governing law."The FMPF revealed Wednesday that on Feb. 10 it sent a letter to Housing and Urban Development Secretary Alphonso Jackson, charging that Fannie's ADC program is "unsafe and unsound" and could "undermine the competitiveness of national commercial real estate markets." In January National Mortgage News broke the news that Fannie was moving closer to making a market in construction loans. The Consumer Mortgage Coalition, an FMPF ally, has also asked HUD to kill the program [see item above]. A Fannie spokeswoman said the government-sponsored enterprise will not be commenting on the issue but noted that HUD first approved a pilot program in 1991 and granted permanent authority in 2003.

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