Economics
Watt Reverses Efforts to Shrink Fannie Mae, Freddie Mac
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The U.S. regulator overseeing Fannie Mae and Freddie Mac revealed plans to ensure the two mortgage-finance companies maintain support for the fragile housing market, reversing efforts to shrink their role.
The Federal Housing Finance Agency will remove targets for reducing the the companies’ mortgage-market footprint and keep current limits on the size of loans they buy, Melvin L. Watt, the agency’s director, said during a speech in Washington today.