NEW YORK (TheStreet) -- Shares of Freddie Mac (FMCC) and Fannie Mae (FNMA) continue to climb following comments yesterday by Mel Watt, director of the Federal Housing Finance Agency that oversees Fannie and Freddie, who said the firms will shift their focus toward making more credit available to homeowners.
The Obama administration and federal regulators are reversing course on some of the biggest post-crisis efforts to tighten mortgage-lending standards amid concern they could snuff out the fledgling housing rebound and dent the economic recovery, the Wall Street Journal reports.
In coming weeks, six agencies, including the FHFA, are expected to finalize new rules for mortgages that are packaged into securities by private investors. Those rules largely abandon earlier proposals requiring larger down payments on mortgages in certain types of mortgage-backed securities, the Journal said.
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