Support for Fannie and Freddie
Using money authorized by congress in 2008 under the Housing and Economic Recovery Act, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac by $200 billion total. Specifically, Treasury will increase Preferred Stock Purchase Agreements to $200 billion each (from the previous level of $100 billion each).
The overall goal behind this move is to increase confidence in the two mortgage giants and by doing so support the continuation of low mortgage rates.
Other Provisions in the Plan
- $1.5 billion in relocation and other assistance for renters displaced as a result of landlord foreclosure.
- $2 billion in neighborhood stabilization funds.