Tuesday, October 21, 2008

Fannie and Freddie's Regulator Suggests U.S. Backs Their Debt

James Lockhart, director of the Federal Housing Finance Agency (FHFA), attended the Mortgage Bankers Association conference in San Francisco yesterday. During the conference, Lockhart tried to shore up confidence in Fannie and Freddie despite turmoil in the debt markets by assuring attendees that the government has effectively guaranteed Fannie and Freddie's debt. In another interview, he expressed that "The U.S. government will be behind them short, medium and long term."

Read more here.

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