Fannie Mae, Freddie Mac to Add Billions to Mortgage Market

Washington, D.C.–The Office of Federal Housing Enterprise Oversight (OFHEO) will relax the mandatory capital requirements for Fannie Mae and Freddie Mac, freeing up $200 billion, reported Wednesday.The required cushion for both government-backed agencies will be cut by a third from its current amount, $20 billion. The new plan will add $200 billion to the mortgage market and should allow more homeowners in risk of default to refinance their mortgages, according to Forbes.