By Judy Martel · Bankrate.com
The troubled, government-controlled mortgage finance companies Fannie Mae and Freddie Mac will continue to shrink their monopoly by forming a joint firm to securitize mortgages.
The new firm could develop into a private mortgage company or become part of the government, according to Edward DeMarco, acting director of the Federal Housing Finance Agency, which oversees Fannie and Freddie. “The overarching goal is to create something of value that could either be sold or used by policymakers as a foundational element of the mortgage market of the future,” he said in remarks published in Reuters.
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