Federal Home Loan Banks to Aid Mortgage Market
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
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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