Boston, MA 06/13/2014 (wallstreetpr) – Federal Housing Finance Agency which regulates Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Federal Home Loan Mortgage Corp (OTCBB:FMCC) is looking forward to changing its policies. According to market experts, the change in policies will lead to increased mortgage lending. These policies will not only help FNMA maintain its market leader’s position, but also will be beneficial for homeowners and prompted home lending.
Steps taken by FNMA for home lending improvements:
In an announcement Melvin L. Watt, the overseer of Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) said,” Our main objective is to bring liquidity in housing finance market and that too by acquiring right way.” FNMA says that the main objective of Government Sponsored Enterprises (GSEs) should be on availability of enough credit to homeowners. The new policy will eliminate all the rules made by FMNA after 2008 crisis to weaken the mortgage giants. The new policy recommended by FNMA for securitized mortgages is expected to finalize in a couple of weeks time. Along with FNMA and FMCC, six other agencies will give their inputs during the finalization of these new policies. According to market experts, the main focus of all the agencies will be on eliminating the rule that asks for bigger down payments for mortgage backed securities.
State Government and FNMA Issue:
On one hand, Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) is looking to make supportive changes in home lending while, on the other hand, the decision of Attorney General Martha Coakley to sue FNMA and FMCC continues to get hype. He wants to defend tenacious foreclosure prevention laws of state government. In last few years, especially after 2008 subprime crisis, both FMNA and FMCC have become bigger and stronger than they were ever before, and state government of Massachusetts doesn’t want to continue things in this way anymore. Entire world is looking after the final decision of government and FNMA. Martha’s law-suit has presented an excellent challenge in front of both the home lending giants; it will be a treat to watch as how FNMA replies to the law-suit.