Mar 19
OFHEO announced a major initiative in cooperation with the two
government sponsored enterprises (GSEs) to increase, by perhaps as much
as $200 billion, the liquidity of the mortgage-
backed securities market.
This reduction combined with the increase of the portfolio caps
announced last month should allow Freddie and Fannie to purchase or
guarantee about $2 trillion in mortgages this year. This
capacity should allow them to…