Fannie Mae and Freddie Mac, mortgage security providers owned by the US government, have said that it will proceed with plans to cut financing of apartment-building loans next year.

Many say that the support has been a key factor for the rental housing market. The government-owned companies provide backing to about 45 percent of the multifamily market. The companies have not determined the scale of cuts in financing but it is believed that it will be over and above the 10 percent reduction in apartment financing required by Federal Housing Finance Agency from the Fannie Mae and Freddie Mac.

Critics of the scale back including developers, lenders and those working for affordable-housing have said that the move will take away rental housing from rural areas and smaller cities such as Boise, Idaho, and Topeka, Kansas. Several people responded to suggestions on the move by saying that the support must remain.

E. J. Burke, chairman of the Mortgage Bankers Association said, "Without Fannie and Freddie our ability to get deals done in smaller towns would be greatly reduced. We haven't seen that impact yet, but down the line I'm very concerned if the conservator continues to cut their volumes."