Fannie and Freddie are fighting with the Trump administration over $7.7B

FHFA owes the government more than $7B by end of year

TRD New York /
Nov.November 29, 2017 05:45 PM

FHFA Director Melvin Watt

Fannie Mae and Freddie Mac owe the White House more than $7 billion, and the two entities are fighting over how to move forward.

Officials from the Federal Housing Finance Agency say they want Fannie and Freddie to keep between $2 billion and $3 billion to protect them against losses, but in exchange for this, officials from the Trump administration want to limit their market footprint through measures like tighter limits on loan sizes that they back, according to Bloomberg.

Fannie and Freddie are scheduled to pay the U.S. Treasury $7.7 billion by the end of December, and if FHFA director Mel Watt decides to withhold some money without getting approval from the administration, it could lead to a major conflict between President Donald Trump and the independent agency.

The negotiations stem from the government’s takeover of Fannie and Freddie in 2008. The two mortgage giants got $187.5 billion to help them get through the financial crisis, while taxpayers got a new type of stock in return that paid a dividend of 10 percent. [Bloomberg] – Eddie Small


Related Articles

arrow_forward_ios
157 West 57th Street (Credit: iStock)

One57 condo with reduced ask tops a slow week of luxury contracts

Clockwise from top left: 730 Fifth Avenue, Unit #PH21; 730 Fifth Avenue, Unit #18A; The Pierre, Unit #3101; and The Park Imperial, Unit #64

Priciest homes listed last week include $60M pad at Crown Building

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Ex-Fannie Mae employee in LA sentenced in bribery, kickback scheme

Ex-Fannie Mae employee in LA sentenced in bribery, kickback scheme

56 Leonard Street (Credit: iStock)

He invested more than $130M into 4 Manhattan condos. Now he’s taking a hit

Due to relatively high income levels and low transportation costs, New York City is the eight most affordable of 20 major cities (Credit: iStock)

NYC is the 8th most affordable big city in America*

53 West 53rd Street, 885 Park Avenue, 70 West 45th Street (Credit: StreetEasy)

Five priciest homes to hit the market last week all over $22M

arrow_forward_ios
Loading...