Freddie to buy $1B in Katrina-area MRBs

Freddie Mac has announced plans to purchase $1 billion in state and local mortgage revenue bonds at below-market rates to assist the Katrina disaster area. Freddie's statement reads in part:

Freddie Mac decided to make the commitment immediately after Congress passed, and President Bush signed on September 23, the Katrina Emergency Tax Relief Act of 2005. That law waives the first-time homebuyer requirement on MRB loans and raises the cap on home repair loans from $15,000 to $150,000 for Katrina victims.

Washington Post coverage here.