Posted on 30 Mar 2009
The regulator of U.S. government-controlled Fannie Mae and Freddie Mac is looking at ways the two firms might help finance small mortgage banks hobbled by a dearth of credit.
According to the Wall Street Journal, quoting a Federal Housing Finance Agency (FHFA) spokeswoman, said the regulator is exploring options through which the two mortgage finance companies might help revive the market for warehouse loans - a key source of funds to mortgage banks.
A detailed plan for Fannie and Freddie to help mortgage banks get credit should be ready to be presented to the FHFA within about a week, John Courson, chief executive officer of the Mortgage Bankers Association, told the paper in an interview.
Fannie Mae and Freddie Mac were nationalized in September as losses at the companies mounted and a national foreclosure crisis deepened.