Fannie and Freddie were required to send most of their profits to the Treasury as repayment for being bailed out, preventing them from rebuilding their capital reserves. In 2019, however, new rules were enacted that permit Fannie Mae and Freddie Mac to keep a combined $45 billion in earnings....
David S. Hilzenrath
Guests question above is the right one. Think of Fannie/Freddie as $ trillion SuperSIVs with no capital and bad assets, AND mortgage pool insurers with no reserves. By no capital, I mean about 1 1/2% against $1.6 trillion of unmarked mortgage assets on their books. By insurers with no ...
Fannie Mae to boost reserves