Treasury Reworks its Rescue of Fannie Mae and Freddie Mac
Monday, Aug. 20, 2012
The Treasury Department has altered the terms of its support of Fannie Mae and Freddie Mac. The changes include the Treasury capturing all the mortgage-finance giants' profits in a given quarter. However, Fannie and Freddie won't be required to make quarterly repayments in periods where they lose money. "We are taking the next step toward responsibly winding down Fannie Mae and Freddie Mac, while continuing to support the necessary process of repair and recovery in the housing market," Treasury official Michael Stegman said in a statement.
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