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FHFA's Lockhart:Fannie, Freddie Could Sell Assets Under Rescue
20 minutes ago - Dow Jones News

DOW JONES NEWSWIRES

The regulator of Fannie Mae (FNM) and Freddie Mac (FRE) said Sunday that the two mortgage giants would be able to sell their troubled assets to the U.S. government under the $700 billion financial-sector rescue package.
"The new facility will be looking at troubled loans and will certainly look at the possibility of potentially buying some loans from Fannie and Freddie. And as well as securities," Federal Housing Finance Agency Director James B. Lockhart said on C-Span's "Newsmakers" program.
Lockhart said that according to his reading of the rescue package, Fannie and Freddie could sell assets to the government. However, he said that no decision to sell these assets has been made. "And whether Fannie and Freddie decide to sell assets will be up to the management teams," Lockhart said.
He said the troubled mortgages held by the two government-sponsored enterprises were only a small percentage of their more than $5 trillion mortgage portfolio. "Certainly they have some troubled mortgages, much lower than overall," Lockhart said. "But certainly in the low, you know, 2%, 3%, 4% in that range..."

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