FHFA Official: Dividend’s Threat to GSE Soundness Prompted ‘Sweep’
January 24, 2014
The Treasury Department’s surprise move during the summer of 2012 to revise the GSE Senior Preferred Stock Purchase Agreement was prompted by fears that Fannie Mae’s and Freddie Mac’s previous dividend payment obligations “would lead to the exhaustion of the Treasury [financial] commitment,” according to a senior Federal Housing Finance Agency official. …