U.S. mortgage finance head: Shift risk from Treasury

Fannie Mae and Freddie Mac may reduce taxpayer risk by requiring more mortgage insurance from borrowers and charging lenders higher fees, steps that could increase borrowing costs, the head of their government caretaker agency said Monday.
Reshaping the mortgage giants three years after the federal government took them over requires spreading lending risks.
The changes that could lead to higher costs for borrowers would be pursued gradually over time to avoid shocking the weak housing market. But with Washington still unable to restructure Fannie and Freddie, the FHFA needed to act under its own statutory authority to ensure Fannie and Freddie continued to keep money flowing into financing home purchases.
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