GSE heads say freer to buy mortgages, securities
WASHINGTON, March 19
WASHINGTON, March 19 (Reuters) - Mortgage finance giants Fannie Mae and Freddie Mac will take advantage of newly eased capital requirements to invest in mortgages and agency and private-label mortgage-backed securities, heads of the companies said on Wednesday.
"MBS spreads have already blown out and they have blown out because there is not a bid," Freddie Mac chief executive Richard Syron said at a briefing.
His comments followed an announcement that regulators were easing capital requirements on the companies so they could provide more funds for stressed mortgage markets.
"Some of that should go to make a bid for that... Some should go to the mortgage market... Some needs to go to develop programs that will help people most adversely affected in this market," he added. (Reporting by Mark Felsenthal, Editing by Chizu Nomiyama)