Fannie, Freddie rise after dive a day earlier

Fannie Mae and Freddie Mac's regulator already requires reserves for off-balance sheet securitizations, Keefe, Bruyette & Woods Inc. analyst Frederick Cannon wrote in a research note Tuesday. Because of those requirements already in place, and the government's support of the Government-Sponsored Enterprises' role in stabilizing the mortgage market, Cannon said it is unlikely the pair would be affected by new accounting standards.

The accounting board has made no decision on changing its rules, and any proposal would include a "rigorous" review process that would likely take several months, Neal McGarity, a spokesman for the group said.

McGarity noted that there are no exceptions currently made for GSEs, but that the Office of Federal Housing Enterprise Oversight--Fannie and Freddie's regulator--does set requirements for the pair of mortgage companies.

Currently, Lockhart said the pair are well capitalized and have already committed to ensuring that remains true, as they have raised more than $20 billion since late last year.

Lockhart added that he expects Freddie Mac to complete a previously announced $5.5 billion capital increase by the end of the summer as part of its plans to shore up its balance sheet.

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AP Business Writer Marcy Gordon in Washington contributed to this report.