Earlier this year, Treasury Secretary Steven Mnuchin told the Senate Banking Committee he has the authority to restructure Fannie and Freddie without any change in law.
As of Monday morning, none of the parties involved – FHFA, the FHFA IG, and the Council – were commenting to IMFnews. Nor were they denying the existence of an investigation.
Fannie Mae and Freddie Mac reported $6.96 billion in net income during the second quarter, down 3.2 percent from the previous quarter, and the duo have actively been working to trim their retained portfolios. Freddie has reduced its portfolio to $236.4 billion in the second quarter, well below the 2018 yearend purchase agreement cap of $250.0 billion. Its portfolio declined 1.9 percent in the second quarter but was down 16.7 percent from June 2017. Some 41.8 percent of ...