Schumer: Let Fannie, Freddie buy extra $145 billion in mortgages

Bill would raise GSEs' portfolio caps to help subprime borrowers

Saying Fannie Mae and Freddie Mac should be allowed to play a greater role in helping troubled subprime borrowers, Sen. Charles Schumer Monday announced legislation that would authorize the government-sponsored entities to buy an additional $145 billion in mortgages.

Schumer, D-N.Y., said Fannie and Freddie would be required to use half the authorization to refinance adjustable-rate mortgages with interest rates scheduled to reset between June 2005 and December 2009.