Treasury’s Rescue Program

SAN FRANCISCO (Reuters) – Mortgage finance companies Fannie Mae and Freddie Mac have each bid to manage home loans the U.S. Treasury will purchase under its multibillion-dollar program to soak up bad mortgage bets, said two sources familiar with the companies’ bid.

Early this month, Treasury said it was seeking a large financial company to manage the mortgage securities it will buy and another to manage whole loans. Treasury is expected to award that whole loan contract in coming days.

“They … have some skills in this area,” said James Lockhart, the chief regulator for the companies that are now in government-run. “Whether it is contacts with the banks that hold these loans. Whether it is servicing or whatever.”

The Treasury is authorized to spend hundreds of billions of dollars to buy failing assets from finance companies to help them scrub their balance sheets and return to normal lending.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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