1/22/2010

The U.S. government is expected to give Fannie Mae and Freddie Mac a bigger role in the mortgage market, Standard & Poor's said. The Obama administration wants to prevent a sharp increase in interest rates for residential mortgages and keep those rates under control. S&P said the government will probably continue to fund Fannie and Freddie under their arrangement as government-sponsored enterprises. "Our outlook for 2010, and perhaps into 2011, is that our ratings should continue to reflect the government's ongoing extraordinary support for the GSEs," S&P said.

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