The Treasury Department will stop purchasing Fannie Mae and Freddie Mac MBS on Dec. 31, although as mentioned in an earlier story posted on StructuredFinanceNews.com, the department is increasing its capital support for the two financially strapped GSEs.
As of Nov. 30, Treasury had purchased $211.5 billion in Fannie and Freddie MBS. "By the conclusion of its MBS purchase program, Treasury anticipates that it will purchase approximately $220 billion of the securities," according to a Treasury statement.
According to a Bank of America Merrill Lynch report, the Treasury previously had estimated purchasing $249 billion in 2009 and $60 billion in 2010.
