Tag Archives: Freddie Footprint to Shrink With New Company

The Federal Housing Finance Agency (FHFA) announced Monday that mortgage giants Fannie Mae and Freddie Mac will create a new joint company for securitizing home loans. The move is viewed as a step toward shrinking the government’s role in the mortgage market. The government-sponsored enterprises, which started receiving taxpayer bailout money in 2008, help finance about two-thirds of U.S. mortgages. Edward DeMarco, the acting director of FHFA, says he wants to shrink Fannie and Freddie’s footprint in order to reduce the risks to taxpayers. “The overarching goal is to create […]