The Federal Housing Finance Agency (FHFA) hinted on Tuesday that the federal government plans bigger involvement in the mortgage market in the future.
The two mortgage insurance companies Fannie Mae and Freddie Mac are expected to work toward making credit lending rules more available and accessible to home buyers.
Changes are necessary, because the housing finance is a vital part of the economy, according to FHFA, therefore, it has to be revived as soon as possible.
The Senate Banking Committee is said to have a vote this week, regarding a legislation that would eventually limit Fannie and Freddie’s major role in the mortgage markets.
There are some policy changes concerning the insurance giants already in the making. One of them involves a proposal from 2013, planning FHFA to reduce the size of mortgages backed by Fannie and Freddie. Currently the limit is $417, 000 in most of the country, and in some more expensive areas – up to $625,500. Eventual reduction might affect negatively the current housing finance market.
Read the full story at USA Today.