Mortgage giants near deal that could boost mortgage lending: Report

An employee entrance sign stands outside Freddie Mac headquarters in McLean, Va.
Andrew Harrer | Bloomberg | Getty Images
An employee entrance sign stands outside Freddie Mac headquarters in McLean, Va.

Mortgage credit may increase and lenders may be able to protect themselves from charges of making bad loans if a deal between Fannie Mae and Freddie Mac, their regulators and lenders goes through, The Wall Street Journal reported on Friday, citing sources familiar with the matter.

Lenders have paid billions in penalties to the mortgage giants on claims of underwriting mistakes on loans that they sold to Fannie and Freddie, according to the newspaper.

The Journal said the agreement might encourage a looser lending environment.

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Read the full story from The Wall Street Journal.