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Sources: FHFA tells Fannie and Freddie to cut costs

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The Federal Housing Finance Agency recently ordered Fannie Mae and Freddie Mac to make major cuts in their general and administrative costs for 2011, according to GSE officials and advisors close to the company. At press time, spokespersons from FHFA and Freddie Mac declined to comment. A spokeswoman for Fannie said, "We don't comment on administrative matters. That said, the company is committed to being good stewards of the government's resources and therefore, regularly reviews its operations to improve efficiency."

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