Federal Reserve Chairman Ben Bernanke said yesterday he feels Fannie May and Freddie Mac should reduce their assets and concentrate on providing mortgages to low income Americans. Fannie May and Freddie Mac have combined assets of $1.4 billion.
Bernankes main concern is if the two companies fail to hedge themselves from risks, most importantly interest rates, this would create a destabilization of financial markets.
The two mortgage companies account for about 40% of the $10.5 trillion residential mortgage market. The assets of Fannie May generated 43% of profits in 2004, Freddie Mac doesn't release that data.
It will ultimately be up to congress if Bernankes recommendations are enacted. Since 2003 the Bush Administration has failed to persuade congress to enact the recommendations to have Fannie May and Freddie Mac reduce their assets.
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Questions or comments write or email:
eugene.dougherty@realliving.com
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YOUR Personal Guide to Real Estate
Bernankes main concern is if the two companies fail to hedge themselves from risks, most importantly interest rates, this would create a destabilization of financial markets.
The two mortgage companies account for about 40% of the $10.5 trillion residential mortgage market. The assets of Fannie May generated 43% of profits in 2004, Freddie Mac doesn't release that data.
It will ultimately be up to congress if Bernankes recommendations are enacted. Since 2003 the Bush Administration has failed to persuade congress to enact the recommendations to have Fannie May and Freddie Mac reduce their assets.
Feels Like Home
Questions or comments write or email:
eugene.dougherty@realliving.com
www.realtyone.com/eugene.dougherty
YOUR Personal Guide to Real Estate
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