Bloomberg Law
Sept. 30, 2019, 12:30 PMUpdated: Sept. 30, 2019, 9:12 PM

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

Elizabeth Dexheimer
Elizabeth Dexheimer
Bloomberg News

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 ...