FILE - In this June 25, 2008 file photo, buildings and palm trees are reflected on the entrance of the Countrywide Financial Corp. office in Beverly Hills, Calif. The top federal prosecutor in Manhattan sued Bank of America for more than $1 billion on Wednesday, Oct. 24, 2012 for mortgage fraud against Fannie Mae and Freddie Mac during the years around the financial crisis. (AP Photo/Kevork Djansezian, file)
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FILE - In this June 25, 2008 file photo, buildings and palm trees are reflected on the entrance of the Countrywide Financial Corp. office in Beverly Hills, Calif. The top federal prosecutor in Manhattan sued Bank of America for more than $1 billion on Wednesday, Oct. 24, 2012 for mortgage fraud against Fannie Mae and Freddie Mac during the years around the financial crisis. (AP Photo/Kevork Djansezian, file)
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FILE - In this Jan. 25, 2009 file photo, a Bank of America branch office is shown in New York. The top federal prosecutor in Manhattan sued Bank of America for more than $1 billion on Wednesday, Oct. 24, 2012, for mortgage fraud against Fannie Mae and Freddie Mac during the years around the financial crisis. (AP Photo/Mark Lennihan, file)
News Summary: Proposed merger of firms' bond units
REGULATOR'S PLAN: The federal regulator who oversees
Fannie Mae and
Freddie Mac is putting forward a plan to combine the two mortgage giants' divisions that issue billions of dollars in securities backed by home loans.
REDUCED GOVERNMENT ROLE: The plan announced by Edward DeMarco, the acting director of the Federal Housing Finance Agency, is part of efforts to overhaul Fannie and Freddie with the goal of shrinking the government's role in the mortgage finance system. The government rescued the companies in 2008 with $170 billion in aid, the costliest bailout of the financial crisis.
SEPARATE ENTITY: DeMarco said the new entity, separate from Fannie and Freddie, could eventually be sold or used as the foundation for a restructured mortgage market.
Tags:
fannie, freddie, fannie mae, freddie mac, bond, federal housing finance agency, news summary, financial crisis, finance, debt, mortgage loan, business, subprime mortgage crisis, mortgage market, home loans, mortgage finance, acting director, mortgage giants, new entity, separate entity, housing finance agency, federal regulator, costliest bailout, edward demarco, issue billions, bond units, government role
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