Regulators are lowering capital requirements for mortgage finance firms - a move that could pump hundreds of billions more into mortgage market but raises risks.
By Chris Isidore, CNNMoney.com senior writer
Last Updated: March 19, 2008: 12:28 PM EDT
NEW YORK (CNNMoney.com) -- An additional $200 billion in financing is headed to the battered mortgage markets after federal regulators Wednesday said they would allow finance giants Fannie Mae and Freddie Mac to reduce the capital they keep on hand.
The move is the latest attempt by policymakers to ease the housing crisis, although it raises risks faced by two government-sponsored firms that are crucial to the functioning of global financial markets.
The rule change was announced by the Office of Federal Housing Enterprise Oversight, (OFHEO), a normally low-profile agency that sets rules for the two government sponsored companies that between them hold or guarantee nearly $5 trillion in mortgages .... Read Entire Article
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