OFHEO Green-Lights Fannie ADC Program

The Office of Federal Housing Enterprise Oversight has given Fannie Mae the green light to restart its construction lending program, but the government-sponsored enterprise is still waiting for the Department of Housing and Urban Development to complete a review.OFHEO Director James Lockhart told MortgageWire that he "signed off" on the program, but included some "growth" parameters on Fannie's purchases of acquisition, development, and construction loans from lenders. A HUD spokesman confirmed that the department has started a review of the ADC program, but could not say when it would be completed. HUD is the GSE's mission regulator. Fannie Mae could not be reached for comment. In July 2006, OFHEO ordered Fannie to suspend its ADC program until it had fixed certain operational and control problems. Fannie Mae can be found online at http://www.fanniemae.com.