Stabilization plan for Fannie, Freddie

Key elements of the federal government's rescue, announced Sunday, of mortgage giants Fannie Mae and Freddie Mac:

* The Federal Housing Finance Agency seized control of Fannie and Freddie by placing them into so-called conservatorship.

* The companies' chief executives were replaced by outsiders appointed by the government.

* The Treasury is buying $1 billion initially -- and as much as $100 billion eventually -- of senior preferred stock in each company, as much as necessary to keep the firms solvent.

* The Treasury will buy, in the open market, mortgage-backed securities issued by Fannie and Freddie, beginning with a $5-billion purchase this month.

* Fannie and Freddie are banned from lobbying and other political activities.

Source: Times research