Housing giants Fannie Mae and Freddie Mac could do an about-face in a renewed effort to nurture the U.S. housing market and better serve consumers seeking mortgage loans. But this time the move appears to offer greater benefits to lenders and borrowers than it does to Fannie's and Freddie's shareholders...
FHFA Director Mel Watt said his agency will maintain conforming loan limits and relax underwriting requirements.
The Federal Housing Finance Agency, the regulator and manager of government-owned Fannie Mae and Freddie Mac, is poised to start to restructure the secondary mortgage market whether credit unions, banks or legislators are ready or not.
Two secondary mortgage giants will begin work on their replacement.
Lenders in streamlined refinance programs, including HARP, will be eligible for relief after an acceptable payment history of only 12 months.