Fannie, Freddie Allowed to Boost Capital Buffers by Billions (2)

Sept. 30, 2019, 12:30 PM; Updated: Sept. 30, 2019, 9:12 PM

Fannie Mae and Freddie Mac will be allowed to boost their capital by billions of dollars to protect against potential losses, a key step in the Trump administration’s push to free the mortgage giants from U.S. control.

Fannie will be permitted to retain earnings until its capital buffer hits $25 billion, while Freddie will be allowed to hold $20 billion, the Treasury Department and the Federal Housing Finance Agency announced Sept. 30. Last year, Fannie reported net income of $16 billion and Freddie made $9.2 billion, signaling it could take more than a year for the companies to reach the ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.