New York Times (02/28/08) P. C1; Bajaj, Vikas
The Office of Federal Housing Enterprise Oversight has agreed to eliminate limits on the amount of loans and securities that Fannie Mae and Freddie Mac can buy. The decision has the potential to boost the sagging housing market; and James Lockhart, director of the watchdog agency, said the move was made in light of the fact that the two government-chartered mortgage giants are now filing their financial reports in a timely manner. However, OFHEO decided not to relax the requirement that Fannie Mae and Freddie Mac hold 30 percent more capital than they are required to by law, citing lingering problems in the mortgage market. The mortgage finance giants welcomed the move to remove their purchase limits, which also has the support of Democrats in Congress and some mortgage industry officials.
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