Mel Watt, director of the Federal Housing Finance Agency, offered clear signs of a shift in direction at the agency, which controls Fannie and Freddie while they operate under a legal process known as conservatorship, the Wall Street Journal reports.
In a speech, Watt said Freddie and Fannie will shift their focus toward making more credit available to homeowners instead of their existing policy of pulling back from the mortgage market.
He also signaled important changes in reports that outline the performance goals for the companies' management teams, the Journal noted.Citing concerns about the health of the housing market, he said he wouldn't direct the companies to reduce the maximum loan limits, something his predecessor had considered. Watt said that for the coming year, the firms' most important mandate would be to promote credit access.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts