WASHINGTON — In another move to help ease the credit crunch, the Federal Housing Finance Board, which oversees the 12 banks in the Federal Home Loan Bank System today announced an increase of $100 billion in securities the banks can buy from Fannie Mae and Freddie Mac. The increase represents a rise to 600% from 300% in capital allowed from these government sponsored entities.

|

The purchases will be spread over a two-year time frame, offering further help and possible stability for a marketplace trying to cope with a lack of confidence for buying mortgage-backed securities.

|

FHFB Board Member Geoff Bacino , a former NCUA board member, said, "This decision by the Federal Housing Finance Board, in concert with the decision of the Administration to unleash Freddie and Fannie to help stabilize the financial markets, are important steps in helping to protect millions of homeowners now facing foreclosures and personal bankruptcy. I strongly support this effort by the Federal Housing Finance Board to help stabilize the mortgage markets and implement our housing finance mission."

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.