July 15, 2024

mls listingsThe Fed has allowed Fannie Mae and Freddie Mac to ease capital requirements, allowing them to pump up to $200 billion into the distressed US mortgage market.

This was done by lowering to 20 percent from 30 percent the amount of extra capital the companies are required to hold.

The extra $200 billion would allow Fannie Mae and Freddie Mac to purchase both existing mortgage-backed securities and new home loans originated by banks. It could also enable them to increase their business of guaranteeing mortgages, a key to helping pull the US housing market out of its fall.     San Diego county real estate agents

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