The nation's largest mortgage banker, Wells Fargo Home Loans, is complaining that Fannie Mae's and Freddie Mac's risk policies have limited the supply of affordable loans."Instead of the two government-sponsored enterprises adapting to the needs of the affordable housing market, the market has evolved by adapting to what the GSEs will buy," WFHL executive vice president Mark Oman says in a letter to Rep. Barney Frank, D-Mass. As a result, the GSEs have "stifled" innovative solutions to affordable housing, Mr. Oman says. Wells Fargo sells most of its conventional loans to Freddie Mac, and it holds $2.5 billion in affordable housing loans the GSEs won't buy. The Wells Fargo executive says he supports congressional efforts to establish a strong GSE regulator that has "sufficient authority to ensure compliance with affordable housing goals." Fannie and Freddie reported a combined profit of nearly $15 billion in 2002. "It's clear that the GSEs could still earn a robust profit and comply with their charter mandate to concentrate on affordable housing," Mr. Oman says.

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