Restraints on Mortgage Lenders Fannie Mae and Freddie Mac are Loosened

Federally-backed mortgage lenders Fannie Mae and Freddie Mac got a reprieve from the government yesterday. Currently, the two companies together are required to maintain a nearly 20 Billion Dollar cash cushion at all times to ensure solvancy. The new measure would reduce that cushion requirement by 1/3 so that the lenders will have more cash to expand their roles in the tight housing market.