Mortgage policies change

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Published: June 11, 2008

WASHINGTON — Mortgage finance companies Fannie Mae and Freddie Mac could be required to keep a larger cash cushion in the future under rules adopted by the companies' federal regulator.

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The Office of Federal Housing Enterprise Oversight, which oversees the government-sponsored companies, said Tuesday it will change how it calculates one of those measurements, known as risk-based capital.

The current methodology overestimates how much Fannie and Freddie would recover on defaulted mortgages and foreclosed properties, the government said.

Under the new rules, the calculations no longer will do so.

The Associated Press


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Related Topics: Business, Economic Indicators, Personal Finance, Home Financing, Consumer Credit and Debt, National Economy, Housing Starts, U.S. National Economy


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