Banking Law News

Fannie-Freddie Watchdog Hopes to End the Profit Sweep This Year

Sept. 11, 2019, 3:40 PM

Fannie Mae and Freddie Mac’s regulator wants to make progress by the end of the year on allowing the mortgage giants to retain more of their earnings and build capital in preparation for freeing them from U.S. control.

Speaking at a credit union conference in Washington on Sept. 11, Federal Housing Finance Agency Director Mark Calabria said that talks with Treasury Secretary Steven Mnuchin have left him hopeful that an agreement can be reached on ending the so-called net worth sweep. The controversial Obama-era policy requires that Fannie and Freddie send nearly all of their profits to the Treasury...

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