Treasury Called on to Rebuild GSEs’ Net Worth, Retain Profits

With Fannie Mae and Freddie Mac on solid financial footing in terms of earnings, some factions of the mortgage industry believe the two should be allowed to rebuild capital by retaining some of their profits. But getting there would require a hard push from the White House, and the approval of the Treasury Department, which controls the senior preferred stock of the two.

In a recent letter to Treasury Secretary Jacob Lew and Federal Housing Finance Agency Director Melvin Watt, the Community Mortgage Lenders of America called for a change to the preferred stock purchase agreements that define the government’s stakes in Fannie and Freddie.

The letter calls for the GSEs “to retain more of their net earnings and rebuild their capital positions.”

more

http://www.insidemortgagefinance.com/issues/imfpubs_igse/15_1/news/Treasury-Called-on-to-Rebuild-GSEs-Net-Worth-Retain-Profits-1000030291-1.html

• This topic was modified 1 month ago by  dpsims.
• This topic was modified 1 month ago by  dpsims.