Financial Times FT.com

Call for tough regulation as mortgages become a federal case

By Saskia Scholtes in New York

Published: April 3 2008 03:00 | Last updated: April 3 2008 03:00

The increasingly central role of the government-sponsored mortgage financiers in the US housing market has increased the pressure for better regulation of such institutions as they try to provide support for struggling homeowners.

As policymakers push for Fannie Mae, Freddie Mac, and the lesser-known Federal Home Loan banks to pump yet more liquidity into the US mortgage market, regulators are advocating stronger oversight and controls of such institutions.

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