Overhaul of Major Lenders Stalled

Accounting scandals have brought Fannie Mae and Freddie Mac under the scrutiny of Congressional reform. In an attempt to tame the 2 giant mortgage companies, Congress has capped Fannie Mae’s investments and a lid on Freddie Mac is expected soon. Investors can breath easier as strict limits from Congress that would threaten profits (stocks and bonds) will be postponed. It is expected that time will run out this year to complete the overhaul of these lenders.