Special Update: Watt Speech

logo shape onlyIn a long awaited speech this morning, new FHFA Director Mel Watt laid out several changes in the direction for Fannie Mae and Freddie Mac from that proposed by former Acting Director Edward DeMarco.  The most significant of which deals with loan limits.  Watt will not force the Agencies to reduce their current loans limits, as DeMarco had planned.  In addition, Watt proposed a renewed focus on expanding credit availability, loosening rules requiring loan buy-backs, and said he will seek public input before any increase in guaranty fees.