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The Obama administration has launched a new program that will help the depressed US housing market, including state and local housing finance agencies to borrow from the US Treasury.
According to Reuters, the program aims to restart a source of mortgage financing for first time and low income buyers that have been shut out of the market by lending constraints.
"Through this initiative, the administration aims to help... jump start new lending to borrowers who might not otherwise be served and to better support the financing costs of their current programs," US treasury secretary Timothy Geithner said in a statement.
According to the Virginia Housing Development Authority, state and local housing finance agencies have only been able to issue approximately $4 billion in tax exempt bonds, compared to $16 billion annually about two years ago.
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