WAThe regulator of Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) on Wednesday eased capital requirements for the two housing finance agencies, allowing them to pump up to $200 billion into the distressed U.S. mortgage market.
The regulator, the Office of Federal Housing Enterprise Oversight, said it was lowering to 20 percent from 30 percent the amount of extra capital the companies had been required to hold after their accounting irregularities, and will consider further reductions.
In addition, the companies will begin to raise "significant capital," OFHEO said in a joint statement with Fannie Mae and Freddie Mac.
"This capacity will permit them to do more in the jumbo temporary conforming market, subprime refinancing and loan modifications areas," OFHEO said, referring to the easing of the capital constraints.
www.reuters.com/article/businessNews/idUSN1928966020080319
FNM 32,42$ = +15,31%
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