September 7, 2008
The Office of Federal Housing Enterprise Oversight has announcedthis morning, it is placing mortgage giants under conservatorshipin an effort to stabalize their ability to perform under tightercredit restrictions and low economic growth.
OFHEO cited the importance of these organizations and theirrole in residential real estate in their press release issuedSunday morning.
James Lockhart, Director Federal Housing Finance Agency, has taken steps over the past six months to help stabilize Fannie and Freddieincluding reducing capital requirements, removing portfolio caps, and others.
"I have determined that the companies cannot continue to operate safely and soundly and fulfill their critical public mission".Lockhart said.
Also released was a conservatorship Q & A which defines the conservators roleas well as the actions they will take.View the conservatorship Q&A herehttp://www.ofheo.gov/media/pdf/FHFACONSERVQA.pdf
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