Fannie Mae and Freddie Mac last week found some congressional support for their controversial foray into subprime mortgages when Senator John Kerry, D-Mass., urged them to expand their role in the subprime market.

Kerry's comments, as well as comments by other key Democratic lawmakers, seem to indicate that the Democrats favor greater participation by the GSEs in the subprime market, provided the objective creates a more efficient market for those consumers without unduly incurring risks to Fannie and Freddie.

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