The Treasury Department is reworking the terms of its bailout of Fannie Mae and Freddie Mac to shrink the companies more quickly and benefit taxpayers.
“We are taking the next step toward responsibly winding down Fannie Mae and Freddie Mac, while continuing to support the necessary process of repair and recovery in the housing market,” Michael Stegman, a Treasury official who oversees housing finance policy, said in a statement. “As we continue to work toward bipartisan housing finance reform, we are committed to putting in place measures right now that support continued access to mortgage credit for American families, promote a responsible transition, and protect taxpayer interests.”
The renegotiated terms of the four-year-old federal conservatorship require the government-sponsored enterprises to downsize their massive mortgage portfolios by 15 percent annually, up from 10 percent. The accelerated timetable would put the firms’ investment portfolios on track to reach the government’s target of $250 billion four years earlier than originally scheduled.
Read more at The Washington Post.