OFHEO estimates that Fannie and Freddie's existing capabilities, combined with the initiatives, will allow government sponsored enterprises (GSEs) to purchase or guarantee about $2 trillion in mortgages this year.
"This capacity will permit them to do more in the jumbo temporary conforming market, subprime refinancing and loan modifications areas," OFHEO said, referring to the easing of the capital constraints. Treasury Secretary Henry Paulson said the move will enable the companies to help more homeowners and strengthen the mortgage market.
Brought to you, courtesy of The Mortgage Market Guide
