Home Loan Banks to Aid Mortgage Market - Forbes.com: "WASHINGTON - The Federal Home Loan Bank system can increase purchases of Fannie Mae and Freddie Mac securities by $100 billion over two years in the latest government effort to stabilize the devastated market for mortgage-backed assets.
The 12 regional banks in the system can increase their purchases of securites issued by these government-sponsored enterprises to 600 percent of capital from 300 percent, the Federal Housing Finance Board, which oversees the banks, said Monday.
The aim is to inject liquidity into a market that has seized up amid a global credit crunch sparked by the U.S. housing market downturn.
Created by Congress during the Depression, the self-funded home loan bank system has some 8,100 members around the country: banks, savings and loans, and credit unions. Eight of every 10 U.S. financial institutions belongs to the home loan bank system
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