WASHINGTON, DC-Now into a third week of flux and upheaval the GSEs and Treasury Department are making strides in stabilizing the situation. On Monday Fannie Mae revealed it is planning to sell $2 billion of three-month benchmark bills, due Oct. 22, 2008 and $1 billion of six-months bill, which would be due Jan. 21, 2009. On Friday Freddie Mac registered with the Securities and Exchange Commission in order to possibly raise as much as $10 billion in new capital.

Fannie Mae’s last auction was held the Monday after Treasury introduced a plan in which the government would purchase equity stakes in the GSEs and extend loans if necessary. The auction went well, in large part, observers say, because of Treasury’s proposal. “I think it provided the market with some confidence,” Peter Cohan, principal of Peter S. Cohan & Assoc., tells GlobeSt.com.

In many quarters of the economy, passage of the Treasury plan in Congress is viewed as essential–not only for the GSEs but the larger housing market. The Real Estate Roundtable, as one example, has sent a letter to Congress asking it to pass the measure, which has been incorporated into a larger housing rescue package, as speedily as possible.

“To help stabilize the nation’s housing sector and restore liquidity to mortgage markets, it is crucial that Treasury’s three-part proposal be included in the bi-partisan, Senate-passed housing legislation–the Foreclosure Prevention Act of 2008 (H.R. 3221)–now being considered in the House,” it read. “We’ve asked both chambers to move on this–we see it as very important, essential, to providing stability and injecting liquidity into the system,” Real Estate Roundtable VP Clifton Rodgers Jr., tells GlobeSt.com. Both the House and the Senate will be considering the bill this week.

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