Obama budget endows $1 billion housing trust fund

WASHINGTON May 7 (Reuters) - President Barack Obama's budget proposal for 2010 would spend $1 billion to endow a new federal fund meant to expand housing opportunities to low-income borrowers.

The Housing Trust Fund was conceived by Rep. Barney Frank, chairman of the House Financial Services Committee, and was supposed to be funded by a tax on mortgage-finance agencies Fannie Mae FRE.N and Freddie Mac. FRE.N

That asssessment has been frozen since the companies were nationalized in September and the budget plan would restore that missing funding. (By Patrick Rucker; Editing by Neil Stempleman)