Fannie, Freddie in regulatory compliance: source

WASHINGTON (Reuters) - The regulator of Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) will announce on Wednesday that Fannie Mae is in "full compliance" with government restrictions placed on the company for accounting irregularities, while Freddie Mac is nearly there, a source familiar with the announcement said.

The source, who has seen a copy of the planned announcement, said that as expected, the Office of Federal Housing Enterprise Oversight will say the firms have won immediate relief from stringent capital rules and will be able to pump up to $200 billion into the mortgage market.

OFHEO will say it expects to lift special restrictions on the companies "in the near term."

OFHEO will hold a joint news conference with Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron at the regulator's Washington offices at 9 a.m. (1300 GMT).

(Reporting by Patrick Rucker, Editing by Chizu Nomiyama)