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October 14, 2008

Fannie Mae and Freddie Mac Expected to Continue Donating to Charity

Fannie Mae and Freddie Mac, the troubled mortgage giants that were recently taken over by the government, are expected to continue donating to charity, the Federal Housing Finance Agency has assured nonprofit groups in the Washington metropolitan area.

The agency — which has been charged with restoring Fannie and Freddie to financial health—said in a letter it is close to finishing a review of the two companies’ charitable activities “to ensure that such activities serve their mission and are appropriate to their conservatorship status.”

The letter, sent earlier this month by James B. Lockhart III, the agency’s director, added: “It is envisioned that the enterprises will continue to make charitable contributions.” It did not specify whether those contributions would match current levels.

Mr. Lockhart was responding to a letter from the Center for Nonprofit Advancement and several other Washington nonprofit, grant-making, and government associations. The letter said that the mortgage companies, which contribute to almost 400 local nonprofit groups, are the region’s top two donors.

“If these investments were suddenly halted, the ripple effects will move swiftly beyond the scores of unmet needs to impact local government and communities,” it said.

Copies of the letters are available on the Center for Nonprofit Advancement’s Web site.

— Suzanne Perry

Tuesday October 14, 2008 | Permalink

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