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Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Federal Home Loan Mortgage Corp (OTCBB:FMCC) may not after all have to back off from deals as a regulatory decision may award them the approval to go forth and finance more in apartment lending’s. The two agencies are currently limited to an annual limit of $30 billion which they are on track to exhaust in the third quarter.

 Possible Increments

Walker & Dunlop CEO, Willy Walker Given, believes the ongoing lobbying of the Federal Housing Finance by lenders may see the limit given a boast of an additional $15 billion. Such a scenario may see Freddie Mac and Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) given a prime opportunity to finance between $40 billion and $45 billion in multifamily loans.

However, an increase of between $5 billion and $7 billion seems more realistic according to a government representative. Fannie Mae and Federal Home Loan Mortgage Corp (OTCBB:FMCC) were forced to raise the cost of their deals last month out of fear that they were closing in on their financing limit faster than initially thought.

The slowdown in business for Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie allowed some banks and private lenders to experience an increase in demand for their conduit programs as people turned down by the two agencies opted for these offerings.

 Mortgage Servicers New Rules

Federal Home Loan Mortgage Corp (OTCBB:FMCC) and Fannie Mae operate under strict regulations closely monitored by the federal government in the wake of them being bailed out of the financial crisis of 2008. Federal officials have already approved a set of new rules for loan servicers, creating minimums for capital liquidity and net worth.

 Under the new legislations all sellers/servicers are expected to have a minimum net worth of not less than $2.5 million while non-bank seller/ servicers are expected to have a capital ratio of not less than 6%. The new set of rules are expected to have an impact on improving access to credit while averting any risks to taxpayers by reducing any chances of market uncertainty as experienced during the financial crisis.

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