WASHINGTON, March 19 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)