Fannie Freddie Scale Back Gifts To Charity 2009: Mortgage Giants

Fannie Freddie Scale Back Gifts to Charity

The mortgage giants’ charitable giving is projected to drop slightly again this year, and the longer-term future of the companies — and their donations
— is still unclear. District-based Fannie Mae and McLean-based Freddie Mac were veering toward collapse when they were taken over by the government in September in a bid to stabilize the home-loan market. The companies have long been the two biggest donors to Washington area charities, and the takeover sent worries throughout the local nonprofit community. Fannie Mae and the Freddie Mac Foundation together gave more than $47 million last year, down from $83.5 million in 2006, the year before Fannie shut down its foundation and moved its giving in-house. The Freddie Mac Foundation is still funded by an endowment. In the first quarter of this year, the two companies gave out $4.5 million. Fannie Mae said it expects that its giving in 2009 will be about the same as last year, while Freddie estimates that its contributions to foundations will drop to $11.1 million from $15.3 million. “We remain committed to the community and supporting stable homes and neighborhoods, but it’s a reflection of the economy and our status,” Freddie spokesman Doug Duvall said. The future of Fannie and Freddie’s charitable efforts will have to be worked out with their government regulator, the Federal Housing Finance Agency. Fannie Mae spokesman Brian Faith said the mortgage finance giant is committed to continuing to support local charities. The company’s charitable mission has been aligned with its corporate mission and focuses primarily on foreclosure prevention, he said.
While nonprofits hope the money keeps flowing, they’re reaching out to other corporate donors as well as individuals in case it doesn’t.

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