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From: Reuters
Published April 17, 2008 03:12 AM

Freddie Mac to announce agreement with lenders: report

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NEW YORK (Reuters) - Freddie Mac <FRE.N> is set to unveil a pact with three major lenders on Thursday as it seeks to make more funds available for big home loans, the Wall Street Journal said.

Quoting Freddie Mac officials, the report said the government-sponsored enterprise will announce the agreement with Wells Fargo & Co <WFC.N>, JPMorgan Chase & Co <JPM.N> and Citigroup Inc <C.N>.

Freddie Mac was not available immediately for comment. Citigroup, Wells Fargo and JPMorgan were also not available immediately for comment.

Till now, lenders have hesitated to offer loans between $417,000 -- the normal limit on mortgages that can be sold to government-sponsored enterprises -- and the new $729,750 limit, passed as part of the economic stimulus package in February, since they were unsure about how much Freddie Mac and Fannie Mae would pay for them, according to the Journal.

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Freddie Mac has consented to 90-day commitments to the three lenders on how much it will pay for the loans to deal with that issue, the report said.

(Reporting by Aarthi Sivaraman; Editing by David Holmes)

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