Banks Get OK To Stretch Mortgage Securities Budget

Law360, New York (March 24, 2008, 12:00 AM EDT) -- In the latest effort to prop up the ailing U.S. mortgage market, the Federal Housing Finance Board has been given an extra $100 billion in buying power to purchase government-sponsored mortgage-backed securities.

The FHFB, which oversees the country's Federal Home Loan Banks, made the announcement Monday, saying its board of directors had passed a resolution authorizing a temporary limit increase that would allow for double the purchases of Fannie Mae and Freddie Mac securities.

An independent agency in the executive branch of the federal government, the...
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