By Scott Lanman Nov. 25 (Bloomberg) -- The Federal Reserve announced two new efforts to unfreeze credit for homebuyers, consumers and small businesses, committing up to $800 billion. The central bank will purchase as much as $600 billion in debt issued or backed by government-chartered housing-finance companies. It will set up a $200 billion program to support consumer and small-business loans, the Fed said in a statement today in Washington. The Fed will purchase up to $100 billion in direct obligations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks and up to $500 billion of mortgage-backed securities backed by Fannie, Freddie and Ginnie Mae, the statement said. ``This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally,'' the Fed said. Separately, under the new Term Asset-Backed Securities Loan Facility, the Fed will lend up to $200 billion on a non-recourse basis to holders of AAA rated asset-backed securities backed by ``newly and recently originated'' loans, such as for education, automobiles, credit cards and loans guaranteed by the Small Business Administration, the Fed said. The Treasury will provide $20 billion of ``credit protection'' to the Fed in the lending program, using funds from the $700 billion financial-rescue package. The Treasury said in a statement that the facility may expand over time and cover other assets, such as commercial and private residential mortgage- backed debt. On the ABS facility, the Fed is trying to avoid having ``continued disruption of these markets'' that would limit lending and ``thereby contribute to further weakening of U.S. economic activity,'' the central bank said. To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net.

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