Feds Marginally Lift Fannie, Freddie Portfolio Caps

Law360, New York (September 18, 2007, 12:00 AM EDT) -- Federal regulators decided to give Fannie Mae and Freddie Mac a little more flexibility with their mortgage portfolios on Wednesday—but the move fell far short of calls by members of Congress and a slew of distressed lenders to allow the regulators to purchase more subprime loans to pump liquidity into the embattled mortgage market.

The new rules enable the two government sponsored enterprises or GSEs to potentially take on up to $20 billion in mortgages over the next six months, according to the Office of Federal...
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