Fannie Mae and Freddie Mac are required to reduce their mortgage portfolios by 10% every year beginning next year, until each of the two mortgage portfolios reaches $250 billion.

Bank of America Merrill Lynch analysts estimated that the GSEs will need to shrink their portfolios by a combined $155 billion because of the  the 10% requirement, and an added $110 billion to make up for the growth in the portfolios because of buyouts.

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