Fannie, Freddie’s Wooing of Investors Hits Snag

October 5, 2012

New regulations governing interest-rate swaps have become an unexpected roadblock for federal officials looking to bring private money back into the U.S. mortgage market. Fannie Mae and Freddie Mac missed a goal of issuing a new class of mortgage securities by the end of September, partly because the new regulations complicated the debt offering.

The Commodity Futures Trading Commission could gain oversight of the risk-sharing bonds under the Dodd-Frank financial law, and Fannie Mae and Freddie Mac could face additional compliance responsibilities and costs.

Source: "Fannie's, Freddie's Wooing of Private Investors Hits Delay," The Wall Street Journal (Oct. 4, 2012)

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