The head of the Federal Housing Finance Agency, which supervises Fannie Mae and Freddie Mac, announced new policies to reinvigorate the two huge residential lenders.
Mr. Watt described four strategic goals:
Maintain core operations, including multifamily and affordable housing Increase private mortgage lending to scale back taxpayer risk exposure Create a common platform for securitizing single family loans Ensure market liquidity until new housing finance legislation
The goal of increasing private participation in mortgage lending is often discussed, yet the two GSE's still underwrite about two-thirds of all single family loans. This renewed commitment to support core operations and market liquidity shows a determination to continue federal support of housing markets.
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