FREDDIE MAC

Now that the U.S. Federal Reserve has nearly finished its massive mortgage bond buying spree, its huge portfolio could be used to tighten credit if and when the economy begins to show real signs of recovery.

Hedge fund firm Pine River, which makes big bets on housing, is bracing for a double dip in that market, its chief executive officer said on Tuesday.

Fannie Mae, the largest provider of funding for U.S. residential loans, on Monday said it would purchase up to 200,000 delinquent loans from its mortgage-backed securities in March as it sought to clarify a new policy that has roiled the market.

An Obama administration program aimed at helping homeowners whose homes have declined in value get new loans has been extended another year, a key housing regulator said on Monday.

Two key Republicans are urging the House of Representatives to speed up a public hearing to investigate the administration's bailout of home funding giants Fannie Mae and Freddie Mac.

U.S. mortgage rates rose for the first time in three weeks, leaping above 5 percent, a key level that could suppress demand for home loans, a closely watched mortgage survey showed on Thursday.

Freddie Mac, the second-largest U.S. home funding company, said on Friday its mortgage investment portfolio shrank in January, while delinquencies on loans it guarantees accelerated.

The U.S. government will pull the plug soon on a popular tax credit that has helped prop up the struggling housing sector amid hope that a pickup in hiring will give the market a fresh shot of life.

The federal regulator of Fannie Mae and Freddie Mac on Wednesday proposed an overhaul of rules governing how the mortgage funding giants serve low-income homeowners while limiting their risks.

The Obama administration and U.S. lawmakers are missing an opportunity to revamp the U.S. housing finance system, which should be central to regulatory reform, a top Federal Reserve official said in an interview on Monday.

U.S. fixed mortgage rates eked out small increases in the past week, but the average 30-year loan held at around 5 percent, fostering affordability, home funding company Freddie Mac said on Thursday.

Federal Reserve Governor Kevin Warsh said on Wednesday that regulatory improvements alone would not prevent future financial crises and the government must be willing to let firms fail.

Federal Reserve Governor Kevin Warsh said on Wednesday that regulatory improvements alone won't prevent future financial crises and the government must be willing to let firms fail.

Treasury Secretary Timothy Geithner said on Tuesday that there is no perfect way recoup money from the financial bailout.

The Obama administration must ensure U.S. housing market stability is retained as it reforms the nation's two largest providers of home mortgage credit, a top Treasury Department official said on Monday.

The Obama administration on Monday laid out credit provisions for Fannie Mae and Freddie Mac under its fiscal year 2011 budget proposal, but did not deliver a vision for the future of the money-losing mortgage finance giants.

Mortgage securities are not expected to return to any significant growth until 2011, despite efforts to restart the market that provided much of the residential credit during the housing boom, according to a industry survey released on Monday.

The New York Federal Reserve said on Friday it bought $989 million of U.S. agency debt with maturities ranging from October 2016 to June 2018.

U.S. mortgage rates fell for a fourth consecutive week, with 30-year mortgages remaining below 5 percent, a closely watched mortgage survey showed Thursday.

The end of the Federal Reserve's program to buy mortgages backed by Fannie Mae and Freddie Mac could have a ripple effect on the market for U.S. government bonds.

U.S. mortgage bonds at the heart of the financial crisis may be revived by Wall Street as soon as this quarter, in what could be the most significant step yet toward repairing the credit and housing markets.