9.22.19
According to the Federal Housing Finance Agency chief Mark Calabria, Fannie Mae and Freddie Mac are expected to start retaining their earnings as early as this week under a new forthcoming agreement. This agreement will pause a years-long arrangement made after the 2008 financial crisis in which the companies were required to hand nearly all of their profits over to the U.S. Treasury Department.Under this new agreement, Fannie and Freddie would be able to keep about one year’s worth of profits, or $20 billion. This upcoming change comes after the September 6 ruling in which a New Orleans federal appellate court criticized the profit sweep and agreed with Freddie and Fannie investors who believed it was illegal.
Read more via the Wall Street Journal.