Source: Associated Press, Washington Post ( Free Registration )

The federal regulator who oversees Fannie Mae and Freddie Mac is putting forward a plan to combine the two mortgage giants’ divisions that issue billions of dollars in securities backed by home loans.

Initially the entity would be owned and funded by the two companies, Acting FHFA Director DeMarco said. However, he said, the goal “is to create something of value that could either be sold or used by policymakers” as a foundation for a restructured mortgage market.

Read Full Article: Plan for Fannie and Freddie’s mortgage securities