Fannie, Freddie Profit Payments Should Continue, Treasury Says
- Mnuchin wants dividends paid as required under bailout
- Payments compensate government, spokeswoman for Mnuchin says
QuickTake: The Future of Fannie Mae and Freddie Mac
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U.S. Treasury Secretary Steven Mnuchin wants mortgage-finance giants Fannie Mae and Freddie Mac to continue sending their profits to the government under the terms of their bailout agreements, a spokeswoman said.
The position is likely to disappoint some advocates of immediately suspending the dividend, including small lenders, affordable housing advocates and large homebuilders, who have sought to stop the payments and allow Fannie and Freddie to rebuild their capital buffers. Private shareholders of Fannie and Freddie, which include funds managed by Paulson & Co. and Perry Capital, have also called for a dividend suspension.