Fannie Mae, Freddie Mac: Government Relaxes Capital Requirements To Help Ease Home Loan Financing

March 19, 2008

Fannie Mae, Freddie Mac: Government Relaxes Capital Requirements To Help Ease Home Loan Financing

(AP) The government on Wednesday relaxed capital requirements at Fannie Mae and Freddie Mac as part of a plan to inject an additional $200 billion of financing for home loans.

The initiative, which will require Fannie and Freddie to raise substantial funds, is part of a broader government strategy to ease a credit crisis that has made it difficult for consumers and businesses to borrow, and spread fear throughout global financial markets.