Monday, January 26, 2009
New rules for Fannie and Freddie
By Sarah Horner
This article presented by CNNmoney.com, discusses some of the new rules and regulations Fannie Mae and Freddie Mac will have to follow. The article discusses the issues that these two companies have faced in the past months as well as where they are headed.
An excerpt from the article details what the companies have faced, "But as the mortgage crisis unfolded over the past two years, the federal government has leaned more heavily on Fannie and Freddie to keep the housing market afloat. With investors shying away from buying mortgage-backed securities, the two companies are essentially the only players in the arena nowadays. Regulators lifted the portfolio caps last March.
Fannie and Freddie, however, continue to suffer as delinquencies rise. On Friday, Freddie announced it would ask the U.S. Treasury for up to $35 billion more in assistance as it anticipates losses in its fourth-quarter results. The company has already drawn down $13.8 billion of the $100 billion in federal funds made available to it when it was placed into conservatorship in September." To learn about the upcoming changes these companies are facing click here.