POLITICO Fannie and Freddie Mac said Wednesday that they will increase the amount of mortgage-backed securities they hold on behalf of Fannie, Freddie and other government-sponsored enterprises, known as Fannie-Freddie, as a result of a new rule that will take effect on Thursday.

“We believe this change is appropriate given the significant cost and uncertainty we expect to see from the rule,” a joint statement from Fannie’s and Freddie’s respective chief executives said.

The announcement came as the U.K. parliament voted in favor of a measure to end the mortgage crisis.

In the U .

S., the Senate is expected to take up the measure Thursday.

The U.N. General Assembly approved a resolution to authorize the end of the crisis on Monday.

Fannie said Wednesday it would hold $1 billion in mortgage-based securities, with the proceeds of that sale going to Fannie.

The Fannie deal also allows Fannie to increase its mortgage risk insurance coverage to $1 trillion from $750 billion, while keeping its mortgage guarantee in place, the bank said. 

The bank said it would continue to provide Fannie with “critical services” such as mortgage insurance, collateralized loans and other financial support. 

Fannie’s $1-trillion mortgage-related exposure is the largest of any federal agency.

The bank said Wednesday the mortgage-lending market has grown rapidly over the past several years and is poised for further growth. 

“We have experienced a significant rise in home prices over the last few years and as such, we have experienced increasing stress in the housing market and therefore increased mortgage losses,” Fannie CEO David J. Cohen said in the joint statement.

“The Fannie Mortgage Insurance Corporation’s ability to respond to this increase in mortgage losses will be enhanced by providing increased liquidity to the mortgage market.” 

Fitch Ratings said in a note Wednesday that Fannie is likely to experience a further increase in its mortgage-linked exposure in the next year or so.

“If the Fannie/Freddie Home Mortgage Lending Facility (FHLMF) is fully utilized, Fannie could see a decline in mortgage exposures over the next several years,” the rating agency said.

“In addition, the FHLMF could see an increase in the FICO risk exposure, potentially increasing the probability of a credit default in the future.” 

The mortgage-purchase company is in the process of converting the FHA-insured mortgage-financing agency to an independent entity.

The Federal Housing Finance Agency will no longer insure Fannie loans.

FHA officials have said they will seek a $50 billion bailout from the federal government.

FHFA has said that the federal guarantee will cover 90% of all Fannie mortgage loans. 

On Wednesday, the Federal Reserve said it could raise interest rates next week on $3.9 trillion of mortgage securities, and the Treasury Department said it will raise rates next year on $2.4 billion of mortgage bonds. 

U.S.-owned mortgage lender Freddie Mac, which has been bailed out by taxpayers, said it expects to sell $1bn in mortgage securities next year. 

Federal Reserve Chairman Ben Bernanke said Wednesday on the earnings call that he sees no immediate threat to the global economy from the FHRA’s impending sale of the agency.

“I think the market is reasonably safe, and I think the economy will move ahead,” Bernanke told reporters.

“This is not a threat to us, but there are other factors that may cause the market to react in a different way.” 

Banks and credit unions also will raise interest charges next year, with Citigroup and Bank of America both raising rates by 1.5 percentage points. 

Fed Chair Janet Yellen, the Fed’s chair, said the bank could increase its borrowing costs next year by 0.2 percentage points, the first increase in more than three years. 

Bondholders could also see increases in interest rates. 

With rates near record lows, and no sign of a slowdown, the yield on the 10-year Treasury bond rose to 1.1 percent.