An Analysis of the Behavior of Federal Mortgage Market Agencies.

The article discusses the behavior of federal mortgage market agencies in the U.S. Agency financing in the U.S. is endogenous with timing being important as the agencies may be asked to assist in the mortgage market during periods of stringent credit. This means that most of their financing occurs during these periods and their reactionary to market conditions. Also, interest rates are affected by the credit stringency because the government financing agencies have to borrow in order to provide assistance.