The Office of Federal Housing Enterprise Oversight is talking to executives at Fannie Mae and Freddie Mac about loosening the 30% capital surcharge on the two -- a move designed to increase liquidity to the mortgage market. According to industry officials, talks have been under way for several weeks but have grown more serious as the mortgage/liquidity crisis has worsened. One idea being discussed involves reducing the 30% surcharge in exchange for a promise by the GSEs to raise new equity in the capital markets.
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