House Democrats are demanding an explanation as to why the Federal Housing Finance Agency (FHFA) prohibited Fannie Mae from executing a plan to introduce new specialty lenders into the forced-place insurance market.

In a letter Wednesday to Edward DeMarco, acting director of the FHFA, a group of House Democrats, led by Rep. Maxine Waters, D-Calif., asked for a list of the interested parties—i.e., insurers, banks and trade groups—that asked the FHFA to stop Fannie Mae from providing incentives for additional insurers to enter the market, potentially reducing rates.

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