Mortgage Lenders Pump More Money Into Markets
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Two U.S. home financing heavyweights won government approval on Wednesday to pump $200 billion more into troubled U.S. mortgage markets, the latest step to stabilize credit markets and avert a deep recession.
Despite intensive efforts to battle rising home foreclosures and calm shaky markets by the Treasury Department and the Fed, which has pledged $400 billion to free up credit, Democratic lawmakers continue to press for bolder action.
Still, markets were not calmed by the latest move by the regulator that oversees Fannie Mae and Freddie Mac to immediately loosen their capital requirements and give them a bigger role in buying up mortgages.
More relief, however, is in the works. A separate regulator appeared near a decision to allow the Federal Home Loan Bank System to double some mortgage holdings to around $300 billion — which would be another big shot of market liquidity.
