Freddie Agrees to Temporary Growth Cap, But Major Impact is Not Expected in MBS Market
August 4, 2006
Freddie Mac this week announced a voluntary agreement with its chief regulator to limit future growth in its retained portfolio, but the decision isn’t expected to have a significant impact on the mortgage securities market. The government-sponsored enterprise agreed to limit growth in its investment portfolio – the second largest in the MBS market – to no more than a 2 percent annual growth rate. The restraint will stay in place until Freddie gets caught…