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Freddie Mac battles FHFA, banks over foreclosure plan, WSJ reports

Freddie Mac (FMCC) is battling its regulator and Wall Street over a plan to provide loans to investors that are buying homes in foreclosure to rent them out, reports the Wall Street Journal. Freddie wants to finance these investors to help jump-start a housing recovery. But the Federal Housing Finance Agency put that on hold, concerned it would make it difficult for banks to compete for the growing number of buyers of foreclosed homes, sources say, as well as increase the government's role. Banks told the FHFA that they can provide plenty of loans to investors.