Capitol mortgage ideas

Risk staff
01 Oct 2007

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Tempers are fraying on Capitol Hill, as debate intensifies over what role two government-sponsored entities (GSEs), Fannie Mae and Freddie Mac, should take to help stabilise the troubled US mortgage industry.

Several Democrat and Republican politicians are asking the entities to take on a larger role so that the economy can weather the ongoing credit crunch. Specifically, they are requesting that Congress temporarily lift the GSEs' cap on their portfolio size by 10%. However, James Lockhart

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