WASHINGTON — Fannie Mae and Freddie Mac should be able to rebuild a capital buffer to avoid any potential crisis in the mortgage market, according to a coalition of affordable housing advocates, homebuilders and small mortgage lender groups.

The Community Home Lenders Association, Community Mortgage Lenders of America and Leading Builders of America released a joint letter Wednesday along with other housing groups backing Federal Housing Finance Agency Director Mel Watt's possible plans to allow the two government-sponsored enterprises to build a capital buffer to prevent a possible draw from the U.S. Treasury.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry