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New rules issued by FHFA on MBS purchases

Shared by Sara on Sat Sep 11, 2010 2:29 am

The Federal Housing Finance Authority (FHFA) has issued final rules that which will bar the mortgage-finance giants from purchasing mortgage-backed securities (MBS) to meet their affordable-housing goals. These rules are a part of the rules which were proposed earlier this year by the FHFA. The main aim of this new rules are to give the companies greater flexibility to satisfy the government mandates so that they can serve low-income homeowners without taking on additional risks.

Source: http://online.wsj.com/article/SB10001424052748704206804575467663870791650.html
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Mini Profile  Niicss
Niicss
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PostPosted: Sat Sep 11, 2010 3:08 am    Post subject:

It has been noted that FHFA said that companies shouldn't undertake "economically adverse or high-risk activities" in order to support affordable-housing goals. Earlier, the government regulators increased targets which required Freddie Mac and Fannie Mae to buy a share of loans from low-income and middle-income borrowers. The new rules will still require them to target a certain amount of their loan purchases but FHFA will adjust the rules as per the market conditions.
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Mini Profile  buywuwant

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PostPosted: Sat Sep 11, 2010 4:09 am    Post subject:

It is great to start helping low-income homeowners more and more without high risk .
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