Reinforcing their position as the cornerstones of the
American housing market, Fannie Mae and Freddie Mac
now have enough capital on hand to purchase all
$2 trillion worth of mortgages that are expected to
be originated this year, their safety-and-soundness
regulator said at the Conference of State Bank Supervisors\'
annual meeting.

While Fannie and Freddie have been slow to purchase
so-called jumbo conforming loans, they are now quickening
their pace, the OFHEO director said. In the first two weeks
of May, their volume in mortgages ranging from $417,000 to
$729,250 was four times what it was in all of April, he reported.
They started out pretty cautiously, Mr. Lockhart said,
but now they are starting to ramp up.