As U.S.'s Lack of Homebuilding Nears Crisis, Fannie Offers Help

  • Planned program could lower the cost of construction loans
  • Housing experts warn effort would likely be drop in the bucket
Photographer: Luke Sharrett/Bloomberg
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Fannie Mae helps borrowers buy homes. Soon it might help build them too.

The mortgage-finance giant is considering a series of pilot programs to address an issue that has plagued the U.S. real-estate market for years: a lack of affordable homes. Fannie’s first initiative, which hasn’t been finalized, would potentially make it cheaper and simpler for prospective homebuyers to get loans to construct new residences.